20 July 2023 - Shenhua's coal-based PP and PE Auction Results
Despite the CNY50/ton hike on both homo-PP and LLDPE contracts, prices were still considered more attractive than local price levels therefore, customers opted to source some cargoes.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 20 July 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 |
1918 |
1353 |
7050 |
$870 |
7050-7360 |
$870-908 |
70.5% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
966 |
900 |
7900 |
$975 |
8010-8130 |
$989-1003 |
93.2% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
356 |
102 |
7850 |
$969 |
7960-8010 |
$982-989 |
28.7% |
|
*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 weakened slightly from the previous day but remained satisfactory for the most part. Chinese bidders are motivated by the optimism surrounding the economic work conference scheduled to take place next week. Despite the CNY50/ton hike on both homo-PP and LLDPE contracts, prices were still considered more attractive than local price levels therefore, customers opted to source some cargoes.
However, the overall sentiment for the near term remains rather cautious as end-product offers from the converters’ side have not picked up hence market players continue to stay prudent for the time being monitoring for clearer market movements.
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