Price List: China’s Zhongjing cuts export PP offers amid weak demand

Zhongjing Petrochemical has once again down-adjusted export homo-PP offers by $25/ton amid the plunging overseas market while the domestic ground shows no sign of improvement.

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

Despite the constant price adjustment, the maker’s latest offers remain unappealing to many overseas buyers. In Vietnam, non-dutiable South Korean parcels have been dealt at $1080/ton based on CIF term in the previous week – much lower than FOB offers from Zhongjing.

For a couple of months now, Chinese homo-PP has been losing competitiveness to South Korean cargoes. “Meanwhile, the local market is not falling as quickly, hence, we are unable to offer larger cuts to international customers. Sales have been slow and the near-term outlook is not bright,” a source close to the producer added. 

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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