22 February 2023 - Shenhua's coal-based PP and PE Auction Results
The price decision led to poor sales results, which once again, highlight the highly price-sensitive market.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 22 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 % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
Homo-PP |
2350 |
2199 |
7600 |
$976 |
7630-7910 |
$980-1016 |
93.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
20 |
0 |
7850 |
$1008 |
- |
- |
0.0% |
|
LLDPE |
1122 |
655 |
8100 |
$1040 |
8140-8320 |
$1046-1069 |
58.4% |
|
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. |
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Shenhua decided to implement CNY100/ton hike on auction LLDPE cargoes following the strong rebound on the Dalian Commodity Exchange in the previous trading day. The price decision led to poor sales results, which once again, highlight the highly price-sensitive market. The reduced buying interest on the Shenhua auction platform is also observed in the domestic spot 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