Price List: Zhongjing resumes offering PP to the export market

After a brief absence, Zhongjing Petrochemical resumed offering export PP offers with increases of $5-10/ton compared to the last price list, citing the firming trend observed across Southeast and South Asia in recent weeks.

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

Chinese suppliers have been more active in the export market in recent days as the opportunity windows opened up following the rise in prices in South and Southeast Asia. 

“Chinese materials once again become more attractive than South Korean cargoes. We are looking to replenish additional cargoes this week before taking off for the Lunar New Year holidays. We are waiting for more re-export offers from Chinese sellers to have a better comparison,” a household product converter in Vietnam commented.

In China, local suppliers have been maintaining spot prices at lower levels than futures contracts on Dalian Commodity Exchange – a strategic pricing decision deemed to push out more parcels to make up space for the inventory buildup throughout the long holiday.

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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