Price List: Zhongjing Petrochemical implement additional hikes on export PP offers

Following the surge in the domestic ground, Zhongjing Petrochemical introduces another $35/ton on export PP offers – the second price hikes this week from the maker, totalling the increases to $60/ton from the previous week.

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

CommoPlast reported earlier, the local PP and PE market in China rose sharply by mid of the week, reflecting the drastic gains in the global energy complex. Over the past couple of trading days, local inventories have been steadily decreasing thanks to the revived risk appetite among arbitrage traders following the rebound on Dalian Commodity Exchange. 

“Responses from overseas buyers are weak because the market is not ready for the sudden hikes. The export opportunity window is closing,” a source close to the producer said.

Several other Chinese suppliers have implemented similar price decisions under tremendously high production cost 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. 

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