Price List: Zhongjing further stepped back on export PP offers

Zhongjing Petrochemical once again stepped back on export PP offers by $5/ton compared to the previous week amid the weakening domestic market ahead of the long Lunar New Year holiday.

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

In spite of the improved profit margins, Zhongjing has not ramped up operating rates at its plant, especially amid the uncertain demand outlook in the post-Lunar New Year holiday period. 

A source from the producer added, “The southeast Asian market is not active, but we do receive inquiries from other regions. We hope to move more cargoes to the export market as the local ground might be facing inventory pressure in the second half of February.”

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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