Price List: Zhongjing maintains export PP offers stable following two weeks of reductions

Following two consecutive weeks of sharp declines, Zhongjing Petrochemical decides to keep export offers unchanged regardless of the unfavourable market conditions.

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

In the domestic market in China, downward pressure escalates on the first trading day of the week as key contracts on the Dalian Commodity Exchange nosedive to 2023's new lows. Still, the producer leverages the depreciated Yuan against the US dollar to keep the offer stable. However, market sources believed that without real demand, the market might continue to gallop lower in the coming days.

The latest offers received subdued responses from overseas buyers at the time of this report. Buyers prefer to refrain from jumping into purchases citing a confluent of negative factors, ranging from high interest rates, and the volatile crude market, to the weaker-than-expected recovery progress in China. 

A Vietnamese buyer told CommoPlast, “We believe the market is nowhere near its cyclical bottom, considering the fact that other Chinese suppliers have opened offers at $940-945 CIF Vietnam terms.” 

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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