Price List: Zhongjing rollovers export PP offers amid dwindling overseas demand.

On the first trading day of the week, Zhongjing Petrochemical announced export PP offers at unchanged levels compared to the previous week while overseas demand remains weak.

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

The price decision is supported by the recent rebound on the Dalian Commodity Exchange that elevate domestic ground in China. However, overseas markets are diverging from China as prices continue to inch lower. In Vietnam, import homo-PP yarn has fallen very close to the $900/ton mark based on CIF terms.

“Therefore, we do not expect positive responses from the market. Our production costs are still on the high side, especially with the latest hike in propane prices and as a result, we are unable to match buying ideas of overseas customers,” a source close to the producer said.

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. 

Want to contact this seller? Let us know.