Price List: Zhongjing resumes PP export offers on a soft note

Following a couple of weeks being absence from the market, Zhongjing Petrochemical resumes offering PP cargoes to the export market with additional reductions from the previous price announcement. The latest price decision shed light on the dull demand outlook following a series of disappointing economic data.

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

Trading sentiment in key Asian markets including China and Vietnam remains soft on the first trading day after the long Labour Day break. Buyers appear overwhelmed by the disappointing Chinese PMI data, the latest key interest rate hike in the US, and the nosedived crude oil prices.

“The market is too weak. At this pace, import homo-PP yarn and injection offers might breach below the $1000/ton threshold in the next couple of days. We are not rushing to proceed with new purchases,” added, a Vietnamese buyer.

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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