Price List: Zhongjing Petrochemical lowers export PP offers amid rising local market

Zhongjing Petrochemical has opened fresh weekly export offers for PP with $15/ton reductions from the previous price announcement, shrugging off the recent surge in the local ground.

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

The domestic spot market extended the gains on the first trading day of the week thanks to the support from the rising crude oil and Dalian Commodity Exchange market. However, overseas demand has fallen sharply in recent days. 

“Even at this price level, it might be difficult to attract buying interest among Southeast Asian customers. Other sellers have concluded yarn at $1360/ton CIF Vietnam and Indonesia last week and buyers are having the same expectations on Zhongjing now,” a market source said.

Zhongjin is among the key petrochemical plants in China that have shut PP productions in March due to negative margins. The company has yet to reveal the restart date at its 1 million tons/year plant. 

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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