12 December 2023 - Shenhua's coal-based PP and PE Auction Results
The auction deals for Homo-PP improved significantly compared to the previous day, while LLDPE deals remained fully subscribed at 100%.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 12 December 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 |
1700 |
1563 |
7220 |
$890 |
7240-7510 |
$892-926 |
91.9% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
316 |
216 |
7310 |
$901 |
7400-7490 |
$912-923 |
68.4% |
|
LLDPE |
798 |
798 |
7900 |
$974 |
7990-8040 |
$985-991 |
100.0% |
|
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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The auction deals for Homo-PP improved significantly compared to the previous day, while LLDPE deals remained fully subscribed at 100%. Market players attribute this to the stability of auction prices, attracting increased buyer interest. Deal prices reflect a comparatively higher trend, with Homo-PP stable to CNY30/ton higher than the previous day and LLDPE showing a low-end increase of CNY50/ton, but a high-end decrease of CNY30/ton.
Traders believe buyers will gradually embrace the rebound trend in the near term, despite lingering concerns about the extent of the price increase. Overall, end-product orders for PP and PE have yet to show great improvements, except for agricultural film, which has seen comparatively better need-based purchases than the previous month.
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