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

Zhongjing Petrochemical is still in the mood to deplete the stocks before the holiday. The producer steps back on the export PP offers for the second time this week, totalling the reductions to $30/ton for all grades. 

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

At the time of this report, the Southeast Asian import PP market has entered a correction period with offers for both homo-PP and PP block copolymer from key South Korean producers making up the lower end of the overall price range.

Chinese customers start to embrace the holiday mood, which means sellers here might focus on the export market to deplete more cargoes. With supply showing signs of improvement, the downward pressure might build up. 

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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