13 June 2023 - Shenhua's coal-based PP and PE Auction Results
The rebound in the transaction rates for LLDPE is partly due to the significant drop in the auction volume of about 60% compared to the previous day.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 13 June 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 |
1548 |
1118 |
6780 |
$838 |
6850-7050 |
$847-871 |
72.2% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
100 |
0 |
6950 |
$859 |
- |
- |
0.0% |
|
LLDPE |
266 |
200 |
7650 |
$946 |
7690-7790 |
$950-963 |
75.2% |
|
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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Compared to the previous session, trading activities on the Shenhua auction platform remained largely unchanged as the producer augmented the slow demand condition with additional price cuts on both PP and PE cargoes. The rebound in the transaction rates for LLDPE is partly due to the significant drop in the auction volume of about 60% compared to the previous day.
Purchasing interest is generally restricted to need basis, underlining the prudent outlook of the market with many placing low expectations for any improvement in demand in the near future.
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