Jun 13, 2024 6:44 a.m.

Price List: China’s Zhongjing steps back on export PP offers on weak demand

Although the domestic spot market in China has been tracking the stabilizing trend over the past several trading days, buyers here would only secure enough materials to cover their immediate needs instead of building stocks.

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Following a brief attempt to maintain export PP offers stable, Zhongjing Petrochemical decided to step back on the price list by $5-10/ton toward the weekend – a sign that the producer might be facing pressure amid the persistently dwindling demand conditions both at home and overseas.

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

Grade

Price List on 30 Mar. 2023

Changes

Term

Homo-PP yarn

$1015

-$5

FOB China, LC AS/TT

Homo-PP injection

$1030

-$10

FOB China, LC AS/TT

BOPP

$1020

-$5

FOB China, LC AS/TT

PP fibre 

$1020-1040

-$5

FOB China, LC AS/TT

PP thin-wall

$1055

-$5

 

*Loading port: Jiangyin Port, Fujian, China

*LSD: 31 May 2023

 

Although the domestic spot market in China has been tracking the stabilizing trend over the past several trading days, buyers here would only secure enough materials to cover their immediate needs instead of building stocks. 

Total PP and PE inventories belonging to Sinopec and CNPC fell about 90,000 tons in the span of four trading days, to 670,000 tons on 30 March 2023. However, according to market sources, these stocks are floating in the distribution market since real demand has not shown any significant improvement.

“There is a huge mismatch between buy and sell ideas at the moment. Customers show limited interest in our cargoes, yet we are unable to reduce the prices any further considering the strong production costs. We expect sales results to be unsatisfactory in the coming days,” 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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Country

China