Price List: China’s Zhongjing further steps back on export PP offers

Following two rounds of price cuts in the previous week, Zhongjing Petrochemical appears still in the selling campaign as the producer slashes export PP offers by another $10-15/ton on the first trading day of this week.

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

Over the past week, pre-holiday replenishment activities in China were not up to expectations. Market sources are cautiously optimistic about the trading sentiment this week; however, Chinese sellers might only have three days to close deals before buyers enter the holiday mood. With 9 days off at the beginning of October, local inventories are expected to build up significantly. 

“But Zhongjing’s price list is way above market acceptance in Southeast Asia. We have bought other non-dutiable origins last week at below the $1050/ton mark. Chinese cargoes need to drop more, especially with the existing currencies situations,” a Vietnamese buyer added.

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.