Price List: China’s Zhongjing lifts PP prices ahead of a global production slowdown

For the second time this week, Zhongjing Petrochemical lifted export homo-PP offers even though trading sentiment in the local China market has declined visibly ahead of the long Lunar New Year holiday. The fresh hikes, according to a source close to the producer, reflect the slowdown in global polymer production, following the shutdowns at major plants including South Korea’s Hyundai, S-Oil, and Nghi Son Refinery and Petrochemical (NSRP). 

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

Earlier this week, a good number of transactions for Chinese homo-PP yarn and injection were reported in Southeast Asia at $1020-1030/ton based on CIF terms. Buyers in this region, while expecting the firming trend, also portray some levels of discontentment over the persistent uptrend amid the sluggish end-product businesses.

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. 

Want to contact this seller? Let us know. 

----------------------------------------------------------------------------

Reported by: 

Kat Yun Yun and Kanessha Ramakrishnan