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

After much effort to keep prices stable in the previous week, Fujian Zhongjing Petrochemical has decided to open a new export price list with a $40/ton reduction to reflect the dwindling domestic ground. 

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

Key PP contracts for January delivery on Dalian Commodity Exchange resumed falling throughout the morning session, regenerating downward pressure on the domestic spot market. Meanwhile, South Korean producers are becoming more aggressive in recent days in Southeast Asia, which draw buyers away from Chinese cargoes. 

“The new offers are quite attractive; however, our concern is on the shipping costs and the vessel shortages. We plan to discuss with the supplier for additional discounts to make a small purchase,” a Southeast Asian buyer commented.   

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. 

Want to contact this seller? Let us know.