CommoPlast | Article - 27 September 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 27 September 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 %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton	CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
Homo-PP	2056	1706	7550	$915	7550-7880	$915-955	83.0%
PP Fiber	-	-	-	-	-	-	-
PPBC	583	293	7680	$931	7910-8000	$959-970	50.3%
LLDPE	778	633	8190	$993	8210-8300	$995-1006	81.4%
LDPE heavy duty	-	-	-	-	-	-	-
HDPE	950	480	7680	$931	7680-7900	$931-958	50.5%
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.

Even though the month's end is approaching, Shenhua still has high allocations for auction. The producer attempted to lure buyers back by introducing CNY140/ton reductions on LLDPE cargoes, which helped to boost transactions compared to the previous session. Apparently, Chinese buyers are still interested in making additional purchases when the prices are acceptable.

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