Price List: Zhongjing Petrochemical steps back on export PP offers

Following a brief firm-up late last week due to the surge on Dalian Commodity Exchange, Zhongjing petrochemical quickly steps back on their offers on the first trading day of this week as demand in China and overseas shows no sign of improvement.

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

Last week, the domestic market in China firmed up briefly on bullish expectations that the government would inject more stimulus to boost consumption. The hype did not last. Many manufacturers continue to suffer from substantially reduced demand, underlining the lack of support for a sustained rebound.

“Unless the demand in China rebounds strongly, it is very challenging for suppliers to implement any increases. We are not in hurry to make fresh purchases; hence, we prefer to wait for further declines,” added, a Southeast Asian buyer.

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.