Price List: China’s Zhongjing announces fresh weekly PP export offers

Zhongjing Petrochemical has opened fresh weekly export offers for homo-PP with $15/ton reductions from the previous week under the pressure from the sluggish demand overseas.

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

The latest offers mimic the offers from other Chinese suppliers regardless of the rising shipping costs and firming domestic market in China in recent days. However, the offers are still above acceptance levels for Southeast Asian buyers, who have been pressing for prices below the $1200/ton threshold, based on CIF terms.

As reported earlier, the maker is not in hurry to further reduce prices given the lack of inventory pressure.   

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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