25 December 2023 - Shenhua's coal-based PP and PE Auction Results
Buyer confidence was hampered by news that international shipping line – Maersk resumed the Res Sea route, which curbed speculations on the shipping costs substantially.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 25 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 |
1692 |
1248 |
7250 |
$899 |
7380-7490 |
$915-928 |
73.8% |
|
PP Fiber |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
200 |
200 |
7450 |
$923 |
7490-7500 |
$928-930 |
100.0% |
|
LLDPE |
316 |
190 |
7920 |
$982 |
7920-8090 |
$982-1003 |
60.1% |
|
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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With the market partially embracing the holiday mood, trading sentiment on the Shenhua auction platform declined visibly on the first day of the week. Buyer confidence was hampered by news that international shipping line – Maersk resumed the Res Sea route, which curbed speculations on the shipping costs substantially.
Despite the minimum allocation for LLDPE film, Shenhua was not able to deplete the quantity. Compared to the previous session, the coal-based producer attempted to lift the auction price for homo-PP by CNY30/ton and LLDPE by CNY20/ton, which were not well-received by customers.
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