Price List: Zhongjing cuts export PP offers for the second time in a week

Key Chinese PP producer – Zhongjing Petrochemical once again stepped back on export PP offers amid the relentless weakening domestic market since the beginning of January. The latest price adjustment marks the second cut this week, bringing the total reduction to $25/ton week-on-week. 

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

The producer maintained low operating rates at their plants to counterbalance the sluggish demand conditions. Trading sentiment in the domestic spot market is lethargic. An increasing number of converters are planning to gradually wind down run rates in the coming week, preparing to take off for the long Lunar New Year break due to the lack of finished goods demand.

“With the price cuts, we received more inquiries from overseas buyers. However, the rising shipping costs become another challenge for exporters like us. We are still in negotiations with customers, and hope to secure some deals,” 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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