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Overlooking the persistently sluggish demand condition overseas, Chinese PP producer – Zhongjing Petrochemical lifted export offers on the limited allocations by $10/ton from the previous week, claiming the weakness of the US dollar. 

The latest offers from the producer and changes from the previous offers are as follows:

As reported earlier, Zhongjing has been operating at 50% capacity for several weeks, focusing on producing only homo-PP yarn and BOPP, hence the absence of other grades. 

A source close to the producer added, “Costs outlook is firming up given the shortage of propane. We are facing resistance from buyers; however, we cannot offer any discounts at the time being.”

Background:

Fujian Zhongjing Petrochemical is a subsidiary of China Soft Packaging Group Holdings Limited – a leading BOPP packaging products manufacturer in China. The company ventured into the upstream sector by building its first PP plant in 2012 and has been actively planning to expand the capacity since then.

Existing plants include two PP lines with a nameplate capacity of 1 million tons/year and a 750,000 tons/year propane dehydrogenation (PDH) unit based in Fujian, China. 

In 2018, the company signed a contract to use LyondellBasell’s 5th Generation Spheripol technology to build a new PP line with an estimated annual output of 1.2 million tons/year. The new plant is scheduled to come online between late 2022 to early 2023. 

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