Mar 29, 2024 11:07 p.m.

Price List: Zhongjing steps back on export PP offers as local market remains weak

Price List: Zhongjing steps back on export PP offers as local market remains weak

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Zhongjing Petrochemical reportedly steps back on export PP offers by $15-20/ton just a day after implementing large increases as trading sentiment dims at home and overseas.

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

Grade

Price List on 3Jan. 23

Changes

Term

Homo-PP yarn

$1095

-$20

FOB China, LC AS/TT

Homo-PP injection

$1110

-$20

FOB China, LC AS/TT

BOPP

$1100

-$20

FOB China, LC AS/TT

PP fibre 

$1115-1125

-$15-20

FOB China, LC AS/TT

PP thin-wall

$1130

-$20

FOB China, LC AS/TT

*Loading port: Jiangyin Port, Fujian, China

*LSD: 10 March 2023

 

In the domestic market, spot homo-PP offers fell CNY50/ton from the previous session while futures contracts on Dalian Commodity Exchange raced lower as investors fled the market ahead of key interest rate decisions from various central banks. 

“The reduction also signals a possibility that the uptrend in the Southeast Asia market might be nearing the peak. We are asking for homo-PP yarn at below the $1100/ton threshold, based on CIF term,” an Indonesian customer 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. 

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