09 October 2023 - Shenhua's coal-based PP and PE Auction Results
Given the weak futures contracts on the Dalian Commodity Exchange, Shenhua decided to slash auction prices right on the first trading day of the week, which allowed the producer to achieve a satisfactory number of transactions
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 09 October 2023. The following table shows 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 |
1850 |
1389 |
7580 |
$919 |
7650-7720 |
$946 |
75.1% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
250 |
250 |
7750 |
$940 |
7750-7870 |
$940-954 |
100.0% |
|
LLDPE |
900 |
708 |
7930 |
$961 |
7930-8190 |
$961-993 |
78.7% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
400 |
0 |
8000 |
$970 |
- |
- |
0.0% |
|
*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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Given the weak futures contracts on the Dalian Commodity Exchange, Shenhua decided to slash auction prices right on the first trading day of the week, which allowed the producer to achieve a satisfactory number of transactions regardless of the weak sentiment across the board. Data showed auction price for homo-PP dropped CNY20/ton while LLDPE nosedived CNY250/ton.
Although the crude oil market started to regain some of last week’s losses, Chinese bidders remained cautious, refraining from making large purchases amid uncertain market outlooks.
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