04 August 2023 - Shenhua's coal-based PP and PE Auction Results
Supporting sales also were the CNY20/ton reduction for both grades which invited buyers back into the market to make some purchases with prices being more competitive than those in the domestic market.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 04 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 |
1432 |
1235 |
7180 |
$885 |
7290-7490 |
$899-923 |
86.2% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
800 |
700 |
7980 |
$984 |
8110-8170 |
$1000-1007 |
87.5% |
|
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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Trading activity on the Shenhua auction experienced a resurgence especially for homo-PP after key contracts on the Dalian Commodity Exchange showed healthier rebounds. Supporting sales also were the CNY20/ton reduction for both grades which invited buyers back into the market to make some purchases with prices being more competitive than those in the domestic market.
Market players, however, remain trepid, hoping for more discounts in the coming sessions to help them with sourcing more cargoes as market real demand continues to perform rather despairingly.
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