Price List: China’s Zhongjing continues to step back on export PP offers

Zhongjing Petrochemical starts the week with an additional $10/ton reduction on export offers for all PP grades compared to the previous price announcement amid the rapid demand deterioration at home and overseas.

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

There have not been any major improvements in the domestic China market as players take a step back to assess the impact of the cabinet reshuffle on the market. In the meantime, export growth in September stood at 5.7%, down from 7.1% in the previous month and retail sales grew just 2.5%.

“The Southeast Asian PP market is weak and Zhongjing’s price list is facing resistance. The producer might be able to attract buying attention in the South Asian region,” a market source 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. 

Want to contact this seller? Let us know.