Price List: Zhongjing Petrochemical maintains stable offers for six weeks straight

Zhongjing Petrochemical resumes offering homo-PP cargoes to the export market on a stable note despite a weak opening on the local front. The latest offers indicated the sixth consecutive week of an unchanged price list, which also shed light on the demand condition.  

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

A source close to the producer once again highlighted the heightening challenges in attracting international buyers amid the volatile energy complex. The source added, “The recent dip in crude oil prices encouraged buyers to adopt a cautious stance instead of engaging in purchasing activities.”

In fact, both Brent and WTI benchmarks fell about 7% in the week ending 03 May 2024 on easing tension in the Middle East, rising inventory in the US, and a soft demand outlook.

Despite these challenges, Zhongjing Petrochemical remains resolute in its offers, citing minimal sales pressure.

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.