21 July 2023 - Shenhua's coal-based PP and PE Auction Results
A trader added that deals for LLDPE were exemplary due to prices being more competitive than the local spot cargoes as well as the limited auction volume for the grade.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 21 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 |
1962 |
1811 |
7000 |
$864 |
7020-7350 |
$866-907 |
92.3% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
650 |
650 |
7950 |
$981 |
7970-8120 |
$984-1002 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
433 |
95 |
7780 |
$960 |
7920-7950 |
$978-981 |
21.9% |
|
*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 continued to perform on a cheerful note as homo-PP was CNY50/ton lower while LLDPE secured full deals despite being CNY50/ton higher than the previous session. A trader added that deals for LLDPE were exemplary due to prices being more competitive than the local spot cargoes as well as the limited auction volume for the grade. Overall trading activity however continued to be largely need basis as many buyers are cautiously waiting on news of any pro-growth stimulus from the government but expect prices to hover within the range bound for the near-term.
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