China’s Shenhua includes PP fiber on Auction Platform as demand surges

As demand for PP fiber from the medical sector surge following the COVID-19 outbreak, China’s largest coal-based polyolefins producer - Shenhua Baotou Coal Chemical Co has started to produce this grade while including the transaction on the Shenhua’s Auction Platform.

On 10 April 2020, the producer’s PP fiber is opened for auction at CNY9000/ton including VAT ($1258/ton without VAT). The 300 tons cargoes fetched bids at as high as CNY16,100/ton including VAT ($2024/ton without VAT). 

A number of other local plants have also switched to produce PP fiber grade as strong demand pushes prices to historically high levels at the moment.

Shenhua Baotou Coal Chemical Co traditionally only focuses on regular commodity-grade including homo-PP yarn and injection grades.