25 April 2023 - Shenhua's coal-based PP and PE Auction Results
Trades on the Shenhua auction platform rose sharply on Tuesday, 25 April with LLDPE achieving 100% deals while homo-PP fell short of just 1.4% (or 40 tons) in completing its allocation.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 25 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 |
2910 |
2870 |
7300 |
$936 |
7310-7600 |
$938-975 |
98.6% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
850 |
850 |
8150 |
$1045 |
8150-8300 |
$1045-1065 |
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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Trades on the Shenhua auction platform rose sharply on Tuesday, 25 April with LLDPE achieving 100% deals while homo-PP fell short of just 1.4% (or 40 tons) in completing its allocation. Traders credit the healthy purchasing activities to the rebounded futures contracts on the Dalian Commodity Exchange rebound this morning, but it is worth noting that the actual demand remains waning. The favourable auction prices induced some need-basis purchases today, but sources expect market sentiment to lose some traction as the Labor Day holiday draws closer.
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