Price List: Zhongjing Petrochemical opens export PP offers with reductions

The persistently soft domestic demand coupled with the depreciating Chinese Yuan against the US dollar has encouraged Zhongjing Petrochemical to further reduce export homo-PP offers from the previous week. 

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

Even after the Chinese government introduced various stimulus packages to support the COVID-19 battered economy, there have not been any major improvements in domestic demand. Several Chinese producers have reduced operating rates in recent weeks, partly due to the electricity rationing, yet buyers remain relatively calm amid the lack of end-product demand. 

This is the second week in a row, Zhongjing reduces export offers. Still, the price list is too high for Southeast Asian buyers. The initial responses are weak, however, with import offers to Vietnam tracking the firming trend, there might be a chance that buyers would show better acceptability moving forward.

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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