Price List: China’s Zhongjing introduces additional reductions on export offers

Zhongjing Petrochemical opens fresh export PP offers on the first trading day of the week with additional decreases from the previous week amid the still soft domestic demand and the weak Chinese Yuan against the US dollar. 

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

Data from CommoPlast showed that export homo-PP yarn offers from China have reached 2022’s all-time low this week and market players started to ask the question if the market is bottoming out amid the easing lockdown measures in China. 

“We plan to make some replenishment if the supplier agrees to prices below the $1250/ton threshold for homo-PP yarn based on CIF terms. There are positive signs, including the high energy prices and improving demand outlook in China. The market might be nearing the bottom,” a Vietnamese customer said. 

Meanwhile, the Chinese Yuan has depreciated about 6.4% against the US dollar over the past month and might continue to weaken moving forward as the PBOC refused to implement forceful measures to intervene. As such, Chinese exporters would benefit from both the lower shipping costs and the exchange rates.

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.