[FREE] Price List: China’s Zhongjing opens new PP prices list with minor gains

Fujian Zhongjing Petrochemical has lifted export homo-PP offers on the first trading day of the week claiming satisfactory sales result locally despite the plunging Dalian Commodity Exchange. 

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

Apparently, Chinese cargoes started to lose competitive advantage in Vietnam as South Korean and Thailand suppliers introduce large price cuts to regain the buying interest. Over the past week, South Korean homo-PP injection fell below the $1300/ton threshold in Vietnam, while yarn cargoes reduced to close deals at $1310-1320/ton, all based on CIF Vietnam.    

“Besides, higher shipping costs from China to Southeast Asia further depress the situation. At this rate, the export opportunity window might close soon,” a source close to the producer added. 

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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