Price List: China’s Zhongjing continues to lower export PP offers

Fresh export PP price list from Zhongjing Petrochemical sees another $10/ton reduction from last week following the plunge on Dalian Commodity Exchange that pulled the domestic spot prices lower.

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

The Dalian Commodity Exchange opens the first day of the week with sharp reductions, reflecting the mass sell-off across the Asian equity market, which also affected the trading sentiment on the domestic ground. 

To Southeast Asian buyers, the downward adjustment is too minor to entice purchasing interest and buy ideas once again emerge at below the $1300/ton threshold, based on CIF terms. 

Although Chinese PP producers are operating at lower rates, the outbreak severely curtails demand as manufacturers are unable to export their cargoes amid the torrid port congestion. 

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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