Price List: China’s Zhongjing cut export homo-PP offers by $10/ton in the post-holiday

Zhongjing Petrochemical has reportedly opened fresh homo-PP offers to the export market with a $10/ton reduction from the previous week. While the producer maintained that the sales pressure is very much manageable, sources said the softer price decision might have derived from peer pressure.

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

As reported prior to the Dragon Boat Festival, several Chinese suppliers cut export homo-PP offers between $10 – 20/ton due to a persistently sluggish trading sentiment at home.

“The stronger US dollar also allows us to offer softer export prices. Trading sentiment in the local market has not changed following the long weekend holiday. We are still getting feedback from buyers before entering serious negotiations,” a source close to the producer said.

Exports activities from China have been hampered by the rising shipping challenges, from severe container shortages to port congestion to skyrocketing freight fees. This condition is expected to persist in weeks to come, which might lead to uneven impacts on the regional market.

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.