Price List: Zhongjing continues to cut export PP offers amid persistently weak local demand

The two consecutive price reductions in the previous week seem to fail to attract overseas buyers and the persistently weak local demand pushes Zhongjing to introduce a fresh round of price cuts at the beginning of this week. With the latest downward adjustment, export PP offers from China are at 2023’s lowest levels.

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

In the local market, the continued falling Dalian Commodity Exchange pressures Chinese sellers to cut spot offers, sending the prices to the lowest level since May 2020. While there are some need basis purchases, the activities are deemed insufficient to support a healthy and sustainable rebound needed to bump the current market outlook. 

The sluggish Chinese market coupled with the gloomy economic outlook spook overseas buyers. Several Indonesian buyers have expressed buying ideas for homo-PP yarn cargoes from the producer at $940-950/ton based on CIF Indonesia terms.

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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