11 October 2023 – Shenhua's coal-based PP and PE Auction Results
Although there is slight rebound on auction prices today, however market participants are still hesitant to stock up.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 11 October 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 |
1850 |
1153 |
7400 |
$898 |
7500-7550 |
$910-917 |
62.3% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
150 |
0 |
7700 |
$935 |
- |
- |
0.0% |
|
LLDPE |
1050 |
800 |
7850 |
$953 |
7990-8070 |
$970-980 |
76.2% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
500 |
130 |
7700 |
$935 |
7700-7900 |
$946-959 |
26.0% |
|
*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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Chinese bidders remain cautious today, although the Dalian Commodity Exchange prices for PP and LLDPE saw a slight rebound, with the auction prices at CNY50/ton lower for both PP and LLDPE. Traders note that these transactions remain primarily on demand only, as prices still remain lower than yesterday, indicating weak market acceptance.
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