Price List: Zhongjing Petrochemical steps back on export PP offers

Major Chinese PP producer – Zhongjing Petrochemical has stepped back on export PP offers just a day after lifting the prices as a result of softer domestic market and stiff resistance from overseas buyers.

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

Key PP contracts for January 2023 delivery on Dalian Commodity Exchange ended the weeklong rally as investors become concerned about a hefty rate hike from the Federal Reserve in the coming week.

“We managed to close some deals to the South American market after adjusting the prices. As other overseas markets start to pick up, we expect to see better export businesses in the near term,” 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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