17 January 2023 - Shenhua’s Coal-based PP and PE Auction Results
17 January 2023 - Shenhua’s Coal-based PP and PE Auction Results
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 17 January 2023. The following table showed the details of the auction results for prime grade only:
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
|||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
|||||
|
Combined and reported by CommoPlast |
||||||||
|
Homo-PP |
1758 |
1654 |
7650 |
$1001 |
7680-7920 |
$1005-1037 |
94.1% |
|
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
|
PPBC |
100 |
0 |
7650 |
$1001 |
- |
- |
0.0% |
|
|
LLDPE |
667 |
117 |
8000 |
$1047 |
8210 |
$1075 |
17.5% |
|
|
LDPE |
- |
- |
- |
- |
- |
- |
- |
|
|
HDPE |
- |
- |
- |
- |
- |
- |
- |
|
|
*Auction and Deal volumes are in tonnage *All USD equivalent prices only exclude the 13% value-added tax (VAT). They have not taken into account other costs that might incur in the selling process, i.e. import duty, customs clearances. |
||||||||
Shenhua concluded the auction session for coal-based PP and PE cargoes with mixed results. While Chinese bidders remained highly interested in homo-PP cargoes in spite of the CNY50/ton ($7/ton) hike in deal prices compared to the previous session; demand for LLDPE fell drastically.
Sources said that compared to LLDPE, arbitrage traders continue to enjoy better margins on futures PP contracts on Dalian Commodity Exchange, which encouraged these buyers to be more active in this segment.
Prices might not observe larger fluctuations during this period as the holidays reflect reduced activity in the market.
Background:
Shenhua Baotou Coal Chemical Co is currently the largest coal-based polyolefins producer in China, operates under four subsidiaries, namely: Shenhua Xinjiang Coal-based New Materials Project, Shenhua Yulin Energy Co Ltd, Shenhua Baotou Coal Chemical Co Ltd and Shenhua Ningxia Coal Industry Group (Ningmei).
The company has an annual capacity of 2.65 million tons/year of PP, 750,000 tons/year of HDPE/LLDPE and 570,000 tons/year of LDPE.
Shenhua Baotou Coal Chemical Co is active in spot trading, while also conducting the daily auction for its cargoes daily between 10AM to 12PM on the official online platform that specifically designed for this purpose: https://www.e-chnenergy.com