25 October 2023 - Shenhua's coal-based PP and PE Auction Results
Market has been searching for support to halt the current downtrend and all eyes are on the government’s debate on the early issuance of government bond
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 25 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 |
2166 |
2126 |
7280 |
$881 |
7280-7550 |
$881-914 |
98.2% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
600 |
450 |
7320 |
$886 |
7520-7620 |
$910-922 |
75.0% |
|
LLDPE |
1200 |
1200 |
7800 |
$944 |
7830-8090 |
$948-979 |
100.0% |
|
LDPE heavy duty |
- |
- |
- |
- |
- |
- |
- |
|
HDPE |
266 |
200 |
7620 |
$922 |
7750 |
$938 |
75.2% |
|
*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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In spite of the stronger futures contracts on the Dalian Commodity Exchange, Shenhua continued to lower auction price for LLDPE film by CNY50/ton from the previous session while keeping homo-PP unchanged. The price decision helped to stimulate trading activities.
Market has been searching for support to halt the current downtrend and all eyes are on the government’s debate on the early issuance of government bond to finance new economic support measures.
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