Price List: China’s Zhongjing continues to reduce export PP offers

Zhongjing Petrochemical reportedly reduces export PP offers on the first trading day of the week even though there has been some minor improvement in demand in the local market late last week.

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

The price decision comes despite a series of bullish economic data announced over the weekend, including the targeted stimulus packages the Chinese authorities promised.

“On the other hand, the producer’s offers have been at the upper end of the overall price range for weeks, hence, the competitiveness is not there. The reductions are necessary,” commented, a Southeast Asian buyer.

A source close to the producer admitted having reduced on-hand stocks at the moment after an uptick in local demand late last week, but the cloudy demand outlook encourages the maker to continue to facilitate transactions.

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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