Price List: Zhongjing resumes lifting export offers on strong local market.
The producer shrugs off the soft buying interest among overseas buyers to protect production margins.
The last downward adjustment on export offers did not work for Zhongjing Petrochemical as the upstream costs remained strong while the firming trend in the local PP market persisted. The producer shrugs off the soft buying interest among overseas buyers to protect production margins.
The latest offers from the producer and changes from the previous offers are as follows:
|
Grade |
Price List on 11 Sept. 2023 |
Changes |
Term |
|
Homo-PP yarn |
$990 |
+$10 |
FOB China, LC AS/TT |
|
Homo-PP injection |
$1010 |
+$10 |
FOB China, LC AS/TT |
|
BOPP |
$995 |
+$10 |
FOB China, LC AS/TT |
|
PP fibre |
$1015 |
+$10 |
FOB China, LC AS/TT |
|
PP random |
- |
- |
FOB China, LC AS/TT |
|
*Loading port: Jiangyin Port, Fujian, China *LSD: 31 Oct. 2023 |
|||
According to market sources, Zhongjing has been operating both the propane dehydrogenation (PDH) unit and the PP plants at reduced rates over the past weeks due to thin margins. As a result, the producer does not carry a high level of inventories. In fact, PP Random Copolymer grade has been absent for four consecutive weeks.
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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