Price List: Zhongjing Petrochemical continues cutting export offers after long holiday

Following the long weekend holiday, key Chinese PP producer Zhongjing Petrochemical resuming cutting export PP offers on the back of weak local demand and dwindling futures market amid heightening economic challenges.  

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

Key futures contracts for September delivery on Dalian Commodity Exchange loses nearly CNY90/ton during the early hours of 26 June 2023 on disappointing holiday spending data and renewed concerns over the global economic outlook after a series of interest rate hikes in Europe late last week. Chinese investors are increasingly inured to the notion that the government might not introduce any aggressive stimulus to boost growth. 

Having revised offers to remain relevant in a market that is low on confidence, the producer added that further discounts might be in line as market sentiment for the near term remains rather grey. 

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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