CommoPlast | Article - 21 February 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 21 February 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 %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
Homo-PP	2280	2229	7560	$974	7610-7910	$980-1019	97.8%
PP Fiber	-	-	-	-	-	-	-
PPBC	15	15	7800	$1005	7800	$1005	100.0%
LLDPE	1166	1166	8000	$1030	8110-8330	$1045-1073	100.0%
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.

Thanks to the strong rebound on the Dalian Commodity Exchange, Chinese bidders actively secure coal-based cargoes on the Shenhua auction platform. While key contracts on the futures market jumped more than CNY100/ton, Shenhua implemented a minor increase of CNY10/ton on PP and CNY20/ton on LLDPE compared to the previous session, making the coal-based cargoes rather attractive for arbitrage traders.

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