CommoPlast | Article - 09 May 2024 - Shenhua's coal-based PP and PE Auction Results

Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes on 09 May 2024. 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	1296	1218	7400	$906	7450-7650	$912-936	94.0%
PP Fiber	-	-	-	-	-	-	-
PPBC	371.5	300	7600	$930	7710-7910	$944-968	80.8%
LLDPE	900	883	8300	$1016	8300-8470	$1016-1037	98.1%
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.

Trading on the Shenhua Auction Platform remained consistent with yesterday's session, yielding satisfactory outcomes. Homo-PP and PPBC experienced an uptick in auctioned volume, while LLDPE saw a slight dip in performance.

A local trader shared, “Buyers flock to the auction platform as coal-based cargoes here are about CNY1000/ton below the domestic market.”

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