30 May 2023 - Shenhua's coal-based PP and PE Auction Results
Shenhua continues to achieve a satisfactory number of transactions on the second auction session of the week as most deals were done before key contracts on Dalian Commodity Exchange lost most of the earlier gains.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 30 May 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 |
1382 |
1281 |
6820 |
$851 |
6820-7080 |
$851-884 |
92.7% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
300 |
300 |
7350 |
$917 |
7350-7510 |
$917-937 |
100.0% |
|
LLDPE |
815.8 |
715.8 |
7550 |
$942 |
7600-7860 |
$948-981 |
87.7% |
|
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 continues to achieve a satisfactory number of transactions on the second auction session of the week as most deals were done before key contracts on Dalian Commodity Exchange lost most of the earlier gains.
Despite the CNY40-50/ton increase from the previous session, coal-based PP and PE cargoes on the Shenhua auction platform remain relatively attractive compared to the spot market. Nevertheless, market players are wary that with the Dalian Commodity Exchange showing signs of weakening, sales will inevitably erode as there is no tangible factor to support any upward momentum.
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