Price List: Zhongjing revises export PP offers upward on improving trading sentiment

Zhongjing Petrochemical decided to revise export PP offers upward in the second price announcement this week following an uptick in trading sentiment in the local market while other international suppliers have implemented similar pricing decisions.

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

Thanks to the bullish expectations surrounding more economic stimulus from the government, key contracts on Dalian Commodity Exchange have been firming up since the beginning of the week. Improved trading activities locally help Chinese suppliers to deplete a good number of cargoes, further freeing them from any inventory pressure.

“However, we are not ready to accept import homo-PP offers above the $900/ton threshold. Besides, we have stocked up 2 months’ worth of supply, hence, we prefer to wait on the sidelines for now,” commented, a Vietnamese buyer.

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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