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Key Chinese PP producer – Zhongjing Petrochemical has once again lowered export PP offers by another $10/ton as demand at home and overseas deteriorates. This is the second downward adjustment this week and the fourth since the producer returned from the Lunar New Year holiday.

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

“While responses toward homo-PP yarn and injection are soft; we still achieve a good number of deals for BOPP cargoes in Indonesia and Indian markets. The domestic market needs more time to recover from the slow consumption,” a source close to the producer commented.

Similar to other Chinese suppliers, Zhongjing Petrochemical has been active in the export market since last week to compensate for the dwindling post-holiday demand at home.

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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