01 August 2023 - Shenhua's coal-based PP and PE Auction Results
While PP and PE offers in the domestic spot market edged higher, Shenhua decided to maintain auction prices for coal-based cargoes unchanged, which partly contributed to the strong sales results.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 01 August 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 |
1616 |
1582 |
7100 |
$876 |
7100-8210 |
$876-1013 |
97.9% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
700 |
626 |
7950 |
$981 |
7950-8190 |
$981-1011 |
89.4% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
92 |
92 |
7950 |
$981 |
7950 |
$981 |
100.0% |
|
*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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Trades on the Shenhua auction platform surged this session due to the bolstered futures contracts on the Dalian Commodity Exchange. While PP and PE offers in the domestic spot market edging higher, Shenhua decided to maintain auction prices for coal-based cargoes unchanged, which partly contributed to the strong sales results.
Without additional factors to influence the present market direction, prices are expected to maintain the current trajectory with the overall supply pressure remaining muted and the crude market on the rise backed by sustained output cuts by OPEC+ which continues to leverage upstream costs.
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