Price List: Zhongjing Petrochemical maintains export PP offers amid limited sales pressure

China's Zhongjing Petrochemical has opted to maintain their export PP offers at last week's levels, citing minimal inventory pressure despite a generally sluggish buying sentiment across Asia.

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

Overseas buyers have expressed dissatisfaction with the unchanged prices. Market sources had anticipated price reductions due to the depreciation of the Yuan against the US dollar, which typically provides exporters with more flexibility in pricing.

A source close to the producer stated, "Our plant is not yet operating at full capacity, resulting in limited availability. We do not have high expectations for securing deals in the export market and will continue to focus on local sales."

This decision reflects Zhongjing Petrochemical's strategic response to current market conditions, balancing limited production capacity with the need to manage local and international sales.

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.