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Zhongjing Petrochemical held export homo-PP offers steady from the previous week regardless of the challenging overseas market conditions and the soft local market. The decision to hold prices firm is supported by manageable inventory levels and a firm outlook for upstream markets.

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

A source close to the producer expressed concerns about securing deals, citing high ocean freight rates as a significant obstacle. "We do not have long-term contracts with shipping companies, so our overseas business depends on spot bookings. The recent surge in freight rates has made it very challenging to attract international customers," the source explained.

The producer reports that shipping costs are quoted at $2,200 per 40-foot container from China to Indonesia, equivalent to approximately $80 per ton.

Background:

Fujian Zhongjing Petrochemical is a subsidiary of China Soft Packaging Group Holdings Limited—a leading BOPP packaging products manufacturer in China. The company first ventured into upstream production by constructing its initial polypropylene (PP) plant in 2012 and has since been actively expanding its capacity.

Currently, Fujian Zhongjing operates two PP plants, each with a nameplate capacity of 500,000 tons/ year. In early 2024, the company commenced commercial production at its third PP plant, which features two lines with a combined capacity of 1.2 million tons/year.

In addition to its PP production, the company’s upstream operations include three propane dehydrogenation (PDH) units with annual outputs of 750,000 tons, 1 million tons, and 1 million tons, respectively.

Written by: Kat Yun Yun 

Edited by: Rochelle Nguyen

Country
China