Price List: Zhongjing cuts PP export prices due to weakened DCE and softer crude prices

Acknowledging the impact of the weakened Dalian Commodity Exchange and softer crude prices, a Chinese PP producer - Zhongjing Petrochemical, has implemented a $10/ton reduction in PP export prices from the previous week. 

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

As reported earlier, Zhongjing anticipating challenges in price rebounding and remains reserved about favourable export deals. 

A source close to the producer added, “We managed to close a small number of deals for BOPP last week after conceding to a minor discount. The demand prospect remains weak. It might be challenging for the market to regain strength anytime soon.”

Zhongjing Petrochemical has been operating at 50% capacity for several weeks, producing only homo-PP yarn and BOPP to protect the margins amid rising propane costs and sluggish downstream demand.

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.