Price List: Zhongjing reduced export PP offers for the second time this week

For the second time this week, Zhongjing Petrochemical stepped back on export homo-PP offers on the back of the continued weakening Chinese Yuan against the US dollar and the softer-than-expected Dalian Commodity Exchange. 

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

Market players added that the continuous price cuts also reflect the heightened competition in the export ground, especially re-export parcels that are priced at well below Zhongjing’s price list.  

“Overseas demand is still soft. We have been able to deplete a satisfactory number of BOPP cargoes in the local market, but wish to conclude more deals before the holiday,” a source from the producer said. 

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.