Price List: China’s Zhongjing lifts export PP offers as local market firms up.

Zhongjing Petrochemical decided to lift export PP offers by $5/ton from the previous week as a knee-jerk reaction to the rebounded Dalian Commodity Exchange. The price decision merely reflects the bullish development on the futures market and less of the state of the demand. 

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

Across South and Southeast Asia, demand remains sluggish. Customers in these regions largely expect further discounts, therefore, any increases at the moment are fiercely rejected. 

“The local market might continue to track an upward trajectory thanks to the resilient Dalian Commodity Exchange. The overseas market will need time to tune into the trend. Nevertheless, we foresee the Chinese market entering a stabilization period soon,” a source from the producer commented.

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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