15 December 2023 - Shenhua's coal-based PP and PE Auction Results
Market players informed that the prices were considered reasonable, leading some who had refrained from purchases in the local market the previous day to re-enter, noting a renewed support in prices.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 15 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 |
2000 |
1960 |
7320 |
$911 |
7340-7480 |
$914-931 |
98.0% |
|
PP Fiber |
30 |
30 |
7500 |
$933 |
7500 |
$933 |
100.0% |
|
PPBC |
366 |
366 |
7180 |
$894 |
7180-7480 |
$894-931 |
100.0% |
|
LLDPE |
750 |
750 |
7900 |
$983 |
8020-8100 |
$998-1008 |
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. |
|||||||
This morning's auction sales witnessed strong support overall, with the majority of cargoes achieving full deals. While Homo-PP experienced a slight weakening, it still yielded encouraging sales results. The auction price for Homo-PP dipped by CNY10/ton lower, and LLDPE maintained a rollover from the previous day.
Market players informed that the prices were considered reasonable, leading some who had refrained from purchases in the local market the previous day to re-enter, noting a renewed support in prices. Anticipating a potential small rebound next week, some players expressed a cautious approach and will monitor the market further.
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