Price List: Zhongjing continues to cut export PP offers further

Despite reducing prices to compensate for the fragile state of the market, weak export and local demand remained which forced Zhongjing Petrochemical to step back on offer further as prices drop $15-20/ton from the start of the week.

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

The Dalian Commodity Exchange continued to march downwards causing a dreary market atmosphere, motivating customers to take up a prudent perspective as they wait for more movements next week. There were some purchases recorded but inadequate to induce any optimism for the market to rejoice.

The end-product market took a hit subsequently as buyers remarked somber responses, especially in the BOPP film market. At the start of the week, Indonesian buyers anticipated prices to inch below $950/ton CIF terms for homo-PP yarn, so far, prices are placed at $945/ton FOB terms however the forecast is for prices to continue heading downwards proving that this expectation may not be entirely far fetched. As of now, the dull Chinese market outlook is projected to remain for the near term.

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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