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Zhongjing Petrochemical once again maintains export PP offers unchanged for the second week in a row despite the depreciating Yuan against the US dollar and the dwindling demand overseas. Sources said that the price decision is primarily supported by the pent-up trading sentiment in the domestic China market over the past several days. 

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

CommoPlast reported earlier on an uptick in trading activities in the domestic market in China thanks to the support from firming Dalian Commodity Exchange. Investors seem more confident in the near-term outlook following the latest official meeting between the US and China that aims to improve the trade relations between the two countries. 

“Southeast Asian customers are still asking for steep discounts citing the availability of other competitive cargoes and the strong US dollar. However, we are in no rush to make any adjustments. The local market remains stable at the moment, providing us alternative selling avenue,” said, a source close to the producer.

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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