CommoPlast | Article - 16 March 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 16 March 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	1800	57	7450	$955	7560-7600	$970-975	3.2%
PP Fiber	-	-	-	-	-	-	-
PPBC	50	32	7800	$1000	7800	$1000	64.0%
LLDPE	1000	150	8050	$1032	8050-8160	$1032-1047	15.0%
LDPE	32	0	8600	$1103	-	-	0.0%
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.

Trading activities on the Shenhua auction platform were severely impacted by the plunging key futures contracts on Dalian Commodity Exchange this morning. Regardless of the reductions of CNY50/ton on homo-PP and CNY100/ton on LLDPE, Chinese bidders show literally no interest in making fresh purchases amid the growing economic uncertainties.

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