Price List: Zhongjing keeps export PP offers unchanged as local market loses steam

Following four price revisions in the previous week, Zhongjing Petrochemical decided to roll over export PP offers. The price decision allows the producer time to monitor further development before making any necessary adjustments now that the uptrend in the domestic market started losing steam. 

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

The most traded PP and LLDPE contracts on Dalian Commodity Exchange fell sharply on the first trading day of the week after official data showed the Chinese economy expanded at a slower pace than expected in the second quarter of the year. However, the reduced inventory pressure cushions the fall in the domestic spot market.

“Though the macroeconomic conditions continue to dwindle, we do not expect any major price reductions in the immediate term. Many Chinese suppliers have depleted their July allocations. The market might recover once the government announces new economic stimulus packages,” 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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