Price List: Zhongjing stepped back on export PP offers by $5/ton

Key Chinese PP producer - Zhongjing Petrochemical cuts their export PP offers by $5/ton compared to the previous week in response to the weaker note on the Dalian Commodity Exchange and the sluggish market sentiment this morning. The company's representative, however, clarified that these are relatively minor pricing adjustments as they are not facing considerable sales pressure. 

The source from the producer added, “We are still monitoring feedback from overseas customers; however, we do not have any plan to introduce drastic price adjustment at the moment. The upstream costs are still strong while supply is manageable.”

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

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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