Price List: Zhongjing Petrochemical cuts export PP offers on weak demand

With no sign of demand improvement, both at home and overseas market, key Chinese producer – Zhongjing Petrochemical offers another $15/ton reduction on all available PP export offers right on the first trading day of the week.

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

Trading sentiment in the domestic Chinese market has been dwindling throughout the past week as participants assess the disappointing outcomes from the National People’s Congress. Market confidence is further shaken following the fallout of the Silicon Valley Bank in the US.

“We are open to negotiation in order to deplete some stocks. Except for BOPP, we have not been able to move many parcels. The demand is really weak,” said, a source close to the producer.

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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