11 August 2023 - Shenhua's coal-based PP and PE Auction Results
11 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 11 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 |
1382 |
1009 |
7130 |
$873 |
7280-7470 |
$891-914 |
73.0% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
850 |
720 |
7950 |
$973 |
8090-8190 |
$990-1002 |
84.7% |
|
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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Trades on the Shenhua auction platform predictably lost some traction this session however were considered acceptable as there were still some need-basis deals concluded. Due to the exemplary auction results in the previous session, LLDPE prices were up by CNY20/ton while homo-PP prices were kept stable. Traders are expecting producers to keep prices on a firmer note in the coming week however there is a chance prices may be lifted cautiously considering the current state of the market’s real demand.
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