Price List: Zhongjing down-adjusts export PP offers amid stubbornly sluggish market

Zhongjing Petrochemical – a key Chinese PP producer has opened fresh weekly price list to the export market with additional decreases of $5/ton from the previous week on the back of the persistently sluggish demand conditions across the Asia region. Within the month of March 2023, the maker has cut offer twice.

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

A source close to the producer said that although purchasing activities in the local market picked up late last week, buying sentiment was not strong enough to help all sellers to deplete the on-hand stocks. This is because buyers continue to adopt a cautious stance given the gloomy economic outlook.

“Even customers from the BOPP sector are reducing their purchases. The whole market is watching out for any positive reinforcement. In the meantime, we are open to negotiation with serious buyers,” added, 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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