CommoPlast | Article - 25 May 2021: Auction sales result for Shenhua's coal-based PP and PE

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 25 May 2021. The following table showed the details of the auction results for prime grade only:

Product	Auction Volume	Deal Volume	Auction Prices			Deal Prices		Deal %
Product	Auction Volume	Deal Volume	CNY/ton	USD/ton		CNY/ton	USD/ton	Deal %
*Combined and reported by CommoPlast*
Homo-PP	1750	1647	8300	$1146	8300-8570		$1146-1183	94.1%
PP Fiber	-	-	-	-	-		-	-
PPBC	100	99	8400	$1160	8420-8430		$1162-1164	99.0%
LLDPE	1000	900	7650	$1056	7740-8210		$1069-1133	90.0%
LDPE	228	106	9600	$1325	9600-9650		$1325-1332	46.5%
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.

Chinese bidders are more active on the second trading day of the week with the support from the surging energy complex. The number of real transactions on the Shenhua auction platform improved significantly, though prices remain soft.

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-shenhua.com