Price List: Zhongjing resumes price cuts for export PP backed by poor demand

Efforts to maintain prices stable from the previous session proved to be void as Zhongjing Petrochemical resumes the downward trend on export PP offers to remain relevant in a market that is heavily affected by global macroeconomic strains.

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

The latest price adjustment proves that the producer struggled the determine the price direction in the previous session amid the shrinking buying interest and volatile upstream costs. Nevertheless, the latest price cuts receive limited responses from buyers. 

An Indonesian buyer quoted, “For the time being, the sweet spot for dutiable cargoes would be in the region of $900/ton CIF Indonesia terms considering Southeast Asian non-dutiable being offered currently at $970 CIF Indonesia.”

Meanwhile, traders are actively collecting bids for Chinese homo-PP yarn in Vietnam at $920-930/ton based on CIF term, which outshines Zhongjing’s latest list price.

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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