Price List: Zhongjing resumes cutting export PP offers following the holiday.

As China returns from the weeklong National Day holiday, Zhongjing Petrochemical continues to cut export PP offers given the persistently weak overseas demand and the nosedived crude oil market recently.

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

In China, the futures market Dalian Commodity Exchange kickstarted the week on a soft note. January 2024 delivery contract for PP fell CNY167/ton by the end of the morning session even though the energy complex started to recover from the recent losses.

“Both local and export markets are quiet. We are monitoring the responses from buyers to determine our pricing strategies,” a source close to the producer added. 

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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