Price List: Zhongjing Petrochemical resumes lifting export PP offers following the long holiday

Key Chinese PP producer – Zhongjing Petrochemical has returned to the market with fresh export offers following the weeklong Lunar New Year holiday. The latest price list indicates $35-40/ton hikes from the pre-holiday levels, reflecting the firming trend observed across the region.

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

The increases are very much expected; however, Southeast Asian buyers prefer to wait for more offers to emerge before making decisions. There have been discussions over the past week that the current uptrend might be capped if Chinese suppliers become more active in exporting PP cargoes after the holiday.

“The current prices are way above our acceptance levels because finished goods buyers refused to accept any increases. We believed other woven bag manufacturers also face the same problem, therefore, any further hikes in raw material prices would likely face stiff resistance,” added, an Indonesian manufacturer.  

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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