Price List: Zhongjing rollovers export PP offers as demand fades

Zhongjing Petrochemical announces fresh weekly PP export offers at unchanged levels from the previous week on the back of softer demand conditions both at home and overseas.

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

In the nearby Southeast Asian market, transactions have dropped sharply over the past week as buyers resisted the recent upswing amid still dwindling end-product demand. 

“The market might reach a deadlock this week. Suppliers are not in the position to cut offers because of the rising production costs outlook while buyers are well-stocked and prefer to remain conservative,” said, a regional buyer.

Zhongjing has been able to deplete the inventories in the local market over the past weeks and is currently free from major sales pressure. Nevertheless, trading sentiment in China is also dimming and might become a major hurdle if persisted in the coming weeks.

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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