[FREE] Price List: China’s Zhongjing steps back on PP export offers on the weak local market

Fujian Zhongjing Petrochemical has reportedly stepped back on export homo-PP offers just three days after lifting the price list earlier this week on the back of the falling domestic market and soft international demand.

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

The domestic spot market in China resumed falling after a brief gain at the beginning of the week as coal supply improves visibly and the government introduces more measures to ensure a stable coal supply. Given the rapid price deterioration at home, most Chinese suppliers prefer to focus on the export market for better margins, however, hiking shipping costs might soon create new challenges. 

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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