28 June 2023 - Shenhua's coal-based PP and PE Auction Results
Trading activities on the Shenhua auction platform for homo-PP faced more resistance as the producer lifted offers by CNY20/ton backed by the upbeat transaction activity in the previous session
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 28 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 |
1832 |
1338 |
6820 |
$835 |
6820-7100 |
$835-869 |
73.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
26 |
0 |
7300 |
$894 |
- |
- |
0.0% |
|
LLDPE |
650 |
650 |
7750 |
$949 |
7750-7890 |
$949-966 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
750 |
184 |
7800 |
$955 |
7900 |
$967 |
24.5% |
|
*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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Trading activities on the Shenhua auction platform for homo-PP faced more resistance as the producer lifted offers by CNY20/ton backed by the upbeat transaction activity in the previous session while LLDPE managed to secure 100% deals despite a slight increase of CNY10/ton albeit the reduced auction volume.
Since the month is nearing its concluding stages, many traders are looking to the month ahead for more developments on pricing and chose to stay away from the purchases with prices currently floating within the range bound.
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