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Zhongjing Petrochemical has reportedly opened a fresh PP price list to the export market with $10/ton reduction from the previous week despite the recent firming trend observed on the domestic ground.

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

The new price list reflects the persistently sluggish demand condition across Asia and even with the fresh cuts, Zhongjing’s new offers remain unattractive at the time of this report.

“Even the shipping costs have plunged sharply, we are still unable to attract buying interest from international buyers. Our focus remains affixed on the local ground at the moment,” a source close to the producer said.  

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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