Price List: Zhongjing surprisingly cuts export PP offers by $5/ton

China’s Zhongjing Petrochemical surprisingly down-adjusted export PP offers by $5/ton amid a revived local market and the constant claim of being free from sales pressure. This is the first price cut in two weeks.

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

“The softer price list was well-planned. This week is a short trading week, both in local China and overseas Muslim markets, therefore, we hope to secure additional business beforehand. Besides, the depreciated Yuan also gives us some leeway to make the adjustment,” a source close to the producer commented.

Chinese market participants will be away for the Tomb Sweeping Festival from 4 – 6 April.

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.