Jul 23, 2024 11:25 a.m.

Price List: Zhongjing resumes cutting export PP offers despite stronger DCE

Zhongjing Petrochemical resumes cutting export PP offers on the first trading day of the week disregarding the stabilizing note of the Dalian Commodity Exchange due to the persistently weak responses from the market.

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Zhongjing Petrochemical resumes cutting export PP offers on the first trading day of the week disregarding the stabilizing note of the Dalian Commodity Exchange due to the persistently weak responses from the market. 

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

Grade

Price List on 29 May. 2023

Changes

Term

Combined and reported by CommoPlast

Homo-PP yarn

$925

-$15

FOB China, LC AS/TT

Homo-PP injection

$940

-$15

FOB China, LC AS/TT

BOPP

$930

-$15

FOB China, LC AS/TT

PP fibre 

$950

-$5-10

FOB China, LC AS/TT

PP random

$965

-$10

FOB China, LC AS/TT

*Loading port: Jiangyin Port, Fujian, China

*LSD: 15 July 2023

 

Apparently, the firming futures market does not seem to stimulate real demand both at home and overseas. Buyers remain concerned over the dragging debt deal in the US and the possibility of another interest rate hike in June, which would further strain consumption.

A source close to the producer said, “Even after the adjustment, buyers are not interested in placing bids. We were hoping that a stronger Dalian Commodity Exchange would halt the downtrend in the spot market, however, the demand situation is rather daunting. We fear that the market is nowhere nearing the bottom.” 

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