09 August 2023 - Shenhua's coal-based PP and PE Auction Results
09 August 2023 - Shenhua's coal-based PP and PE Auction Results
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 09 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 |
1422 |
1422 |
7090 |
$870 |
7120-7470 |
$874-917 |
100.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
750 |
700 |
7900 |
$970 |
7920-8110 |
$972-995 |
93.3% |
|
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 platform continued to perform on the higher end as LLDPE secured more than 90% of deals while homo-PP sold out its allocations. Helping the upbeat sales this session is the positive futures contracts on the Dalian Commodity Exchange as customers flocked to the auction platform to make necessary replenishments considering prices in the local market remain on a firmer note.
It is worth pointing out that despite some need-basis purchases, overall market demand remains despondent which has caused some market participants to question the longevity of the current futures rebound trend. Customers are still highly resistant to stiff offers and as of now, the general expectation is for buyers to continue avoiding lengthy sourcing until real demand experiences some surge in activity.
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