Price List: China’s Zhongjing rollover export PP offers amid the absence of pressure

Key Chinese PP producer – Zhongjing Petrochemical has opened weekly export PP offers at unchanged levels compared to the previous week in spite of the lingering demand weakness across the Asia region. 

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

A source close to the producer added, “We are willing to negotiate with serious buyers, though we could not agree to any substantial discounts given the lack of inventory pressure.” 

In fact, Zhongjing continues to operate at reduced rates at the moment. The No. 1 PP line (Phase I plant) with an annual capacity of 500,000 tons/year belonging to the maker remained shut this week after being taken offline on 5 December 2023 due to negative margins. 

Meanwhile, a series of other local and regional plants are in mid of the maintenance season, which is expected to impact the spot availability in the coming weeks. Still, attempts to introduce fresh hikes on PP cargoes have proved challenging for now.

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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