Price List: Zhongjing Petrochemical rollover PP export offers amid falling local market

Despite the constantly falling local market and the depreciating Yuan, major Chinese PP producer – Zhongjing Petrochemical decide to rollover export offers on the first trading day of the week, claiming the thin margins.

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

On the first trading day of the week, spot homo-PP yarn traded in the Eastern China region fell as much as CNY150/ton from last Friday, to CNY 7950-8150/ton including 13% VAT (or $ 977-1002/ton excluding VAT). 

Although the downward pressure on the domestic PP market is growing, Zhongjing tends to adopt a conservative stance in making any price adjustments. The paltry overseas demand might soon force the maker to introduce fresh reductions, market sources said. 

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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