Price List: Zhongjing adjusted export PP offers on stronger Yuan, persistently weak demand

Key Chinese PP producer – Zhongjing Petrochemical has lowered export offers by $5/ton for another week partly because of the appreciating Yuan against the US dollar while purchasing interest across the Asian market remained subdued.

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

As reported earlier, Zhongjing revealed the challenges to finalize deals at the moment. The producer expressed concerns over intense competition, citing that another major Chinese supplier is offering prices of $50/ton lower to attract deals in South America. 

However, the producer highlighted the inability to match such low prices, considering the upstream cost of their plant. “The competitive pricing dynamics pose a dilemma for the producer as they navigate market conditions and balance profitability with market share,” a source close to the producer added. 

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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