Price List: Zhongjing cuts pp export prices amidst market caution and holiday season.

Key Chinese PP producer - Zhongjing Petrochemical, has implemented a $5/ton reduction in PP export prices, aligning with the dwindling demand overseas and heightened competition from other Chinese suppliers.

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

This is the third consecutive week the producer lowered export offers despite having limited on-hand stocks stemming from the drastic production rate cut over the past months. However, responses from the market remained weaker than expected. The subdued condition might persist in the coming weeks with the fast-approaching Christmas and New Year holidays.

A source close to the producer added, "Especially, we are still unable to offer any sharp discounts due to negative margins, making it challenging to compete with other suppliers who are more flexible in negotiations than our current price level."

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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