Price List: China’s Zhongjing steps back on export PP offers as weak demand persists.

Following three consecutive upward adjustments in pricing in the previous week, Zhongjing Petrochemical stepped back on export PP offers by $5/ton amid disappointing responses from overseas buyers. 

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

The regional PP market continues to be driven upward by the rising upstream costs and with the tightening global crude oil supply, the cost outlook for PP plants also increases. However, real demand remains sluggish. Many Asian converters are suffering from weak finished goods demand, which reduces the need to build raw material stocks.

“The reductions also reflect softer transactions in the local China market and falling futures contracts. We are still unable to accept homo-PP cargoes above the $1000/ton threshold,” said, 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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