20 December 2023 - Shenhua's coal-based PP and PE Auction Results
Market sources said that even after the CNY50/ton hike in auction prices, the coal-based cargoes are still more attractive than regular parcels in the spot market.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 20 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 |
2202 |
2152 |
7200 |
$894 |
7210-7610 |
$895-945 |
97.7% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
266 |
266 |
7200 |
$894 |
7210-7450 |
$895-925 |
100.0% |
|
LLDPE |
496 |
496 |
7850 |
$974 |
7870-8130 |
$977-1009 |
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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Chinese bidders are more enthusiastic about making fresh purchases following the continuous rebound on the energy complex as the number of deals on the Shenhua auction platform surged from the previous session. Market sources said that even after the CNY50/ton hike in auction prices, the coal-based cargoes are still more attractive than regular parcels in the spot market.
The bullish development indicates buyers gradually adapting to a rebound trend, albeit at a slow pace. However, there is caution among traders citing the lack of strong expectation for a significant surge in buying appetite at this point.
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