Price List: China’s Zhongjing cuts export PP offers amid falling local market

Zhongjing Petrochemical has opened the weekly PP offers with additional reductions from last week amid the falling Dalian Commodity Exchange that drag the domestic spot market lower.

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

As reported earlier, spot homo-PP offers traded in Eastern China fell CNY100/ton to CNY 8600-8750/ton including VAT ($1164-1184/ton excluding VAT) while September delivery contracts loses three digits in value by the end of the trading session.

While cutting prices, the producer also offers smaller allocations after achieving a satisfactory number of transactions in the local market. However, Southeast Asian buyers remain uninterested in the new offers, citing the possibility of further decline ahead.

“Coal-based homo-PP offers have already fallen below the $1300/ton threshold based on CIF term. The demand is so weak, we expect regular homo-PP to follow suit in the coming days,” a Vietnamese buyer commented. The source expressed buy ideas for import cargoes at $1250-1280/ton based on CIF terms.

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. 

Want to contact this seller? Let us know.