Price List: Zhongjing Petrochemical keeps export PP offers stable on the first week of July

Key Chinese PP producer Zhongjing Petrochemical opened export PP offers for the first week of July stable from last week to size up market response despite the continued depreciating Yuan against the US dollar, which usually induces some reductions in export prices.

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

The decision to keep offers stable is deemed to test buyer acceptance following some preliminary signs of a stabilizing market observed in the previous week. Unfortunately, many Southeast Asian buyers remain unfazed, showing no real interest in cargoes priced above the $900/ton threshold.

“We continue to monitor further development before making any adjustments. Over the past couple of weeks, we managed to deplete a good number of cargoes locally, but the weak economy is putting a lot of pressure on the outlook,” said, a source close to the producer.   

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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