26 June 2023 - Shenhua's coal-based PP and PE Auction Results
The Chinese market returned from the long weekend holiday to witness a drastic slump in trading activities on the Shenhua auction platform as both homo-PP and LLDPE grades achieved deals below 15% of its auction volume.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 26 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 |
1000 |
130 |
6900 |
$846 |
6900-6960 |
$846-853 |
13.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
650 |
70 |
7790 |
$955 |
7800 |
$956 |
10.8% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
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 Chinese market returned from the long weekend holiday to witness a drastic slump in trading activities on the Shenhua auction platform as both homo-PP and LLDPE grades achieved deals below 15% of its auction volume.
Customers expressed reserved interest with many opting not to make purchases to keep an eye on the market movements following disappointing holiday spending data. It is important to note that arbitrage traders make up a large part of bidders on the Shenhua auction platform, and without any real hikes in futures contracts on Dalian Commodity Exchange that create a healthy price gap, this segment of customers might continue to remain on the sidelines.
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