[FREE] Price List: China’s Zhongjing introduces moderate reductions on export PP offers

Fujian Zhongjing Petrochemical has opened fresh export offers for homo-PP with a reduction of $20/ton from the previous week, reflecting the recent reductions in the domestic ground.

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

The reductions appear too minor to entice demand overseas, especially in Southeast Asia and even in South Asia, where prices have been deteriorating rapidly thanks to the aggressive South Korean suppliers. 

“That is why most Chinese sellers are focusing on the domestic market until the shipping costs become more favourable. The general supply condition seems comfortable while demand across Asia is soft. We have yet to see any sign of a slowing down in this downswing,” a market source 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. 

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