2021 September PP Resources Auction at Shenhua Group
Preface: Shenhua Group, as the earliest coal-based enterprise in the Chinese domestic polypropylene (PP) industry, owns Shenhua Ningxia Coal Industry, Shenhua Baotou, Yulin Shenhua Energy and Shenhua Xinjiang Energy. The bidding situation of Shenhua Group has always been closely watched by the industry participants. By observing the bidding situation of Shenhua Group, it is possible to understand the market trading situation of the whole market to a certain extent.
According to the statistical data monitoring of SCI, taking PP raffia as an example, the average monthly auction transaction rate of Shenhua Group was 77% in September 2021, and the auction transaction rate increased by 18% compared with the previous month. This month’s lowest auction transaction rate was 20%, while the highest point was 97%. In September, China’s PP market prices spiraled up with largely stable supply-demand fundamentals. This month, no new domestic PP units were put into production. At the same time, PP spot prices showed a rapid uptrend due to the recovery of demand and the increase in futures prices.
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