Price List: China’s Zhongjing slashes export PP offers as local demand wanes

The previous price hikes to reflect the surge in crude oil costs obviously did not yield the intended sales results for Zhongjing Petrochemical, both at home and in the overseas market. The maker steps back on the price list this week despite the South and Southeast Asia markets start showing signs of stabilization to a firmer trend. 

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

In China, homo-PP demand has been soft throughout the past week and any attempt to lift offers bumped into stiff resistance from buyers. The trading sentiment is expected to decline further as the market enters the ChinaPlas week, which is followed by the long Labour Day holiday.

“The price list is a warning sign that the current uptrend in Southeast Asia might not sustain. We are on a high alert and would like to monitor further development on the sideline,” commented, a Vietnamese 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. 

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