Price List: Zhongjing implements further hikes on export offers.

Given the continued rising local market while crude oil costs hit near ten-month highs, Zhongjing Petrochemical decided to lift export PP offers for the third time this week, totalling the increase to $35/ton compared to the previous week.

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

The continuous price hikes are primarily driven by cost push while the demand across Asia has not been able to catch up. In Southeast Asia, buyer resistance is stiff. In some markets, trading activities come to a near standstill as customers carry comfortable stocks while preferring to monitor the state of the demand in post-Golden Week in China.

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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