Price List: Zhongjing lower export PP offers; cut production rates amid thin demand

Zhongjing Petrochemical decided to reduce export PP offers by $5/ton from the previous week despite the substantially lower operating rates. Demand remains disappointing as buyers do not see the need to stock up when finished goods demand remains muted.

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

Zhongjing Petrochemical is currently operating at 50% capacity due to persistent margin compression. The PDH-based producer decided to focus only on homo-PP yarn and BOPP for the time being while monitoring the demand conditions further.  

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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