Price List: Zhongjing introduces additional hikes on export PP offers.

As futures PP contracts on the Dalian Commodity Exchange retain their upbeat momentum, Zhongjing Petrochemical decided to lift export PP offers for the second time this week, adding another $10/ton on top of the $5/ton hike introduced earlier this week.

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

While the producer continues putting in the effort to protect the bottom-line, real demand in Southeast Asia has not shown any improvement over the past several trading days. On the bright side, an uptick in inquiries from South Asian buyers might add to support for the maker to maintain a firm stance on their prices.

Additionally, PP random copolymer and PP fibre grade H39S remain absent for the week as the producer pours in more effort on producing more homo-PP yarn and BOPP as the current availability of these grades in the Chinese market remains limited. Also influencing the decision is the better enquiry for homo-PP yarn as opposed to PP random.

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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