10 April 2023 - Shenhua's coal-based PP and PE Auction Results
For all the demand witnessed by LLDPE, the bulk of its orders come from the Northwestern region due to supply frailties whereas in other areas, orders are rather mediocre.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 10 April 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 |
1800 |
955 |
7400 |
$952 |
7400-7610 |
$952-979 |
53.1% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
100 |
100 |
7600 |
$978 |
7600-7670 |
$978-987 |
100.0% |
|
LLDPE |
750 |
750 |
8130 |
$1046 |
8130-8280 |
$1046-1065 |
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. |
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The percentage of deals for LLDPE on the Shenhua auction platform was exemplary despite a CNY30/ton increase, while homo-PP deals were significantly weaker compared to Friday, highlighting the current stronghold LLDPE grade products have on the Chinese market.
For all the demand witnessed by LLDPE, the bulk of its orders come from the Northwestern region due to supply frailties whereas, in other areas, orders are rather mediocre. As of now, the shrinking purchasing demand is expected to inhibit major price gains in the near term.
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