Price List: Zhongjing rollover export PP offers amid uncertain market outlook

Zhongjing Petrochemical reportedly opened fresh export PP offers on the first trading day of the week at unchanged levels from the previous week despite the growing Middle Eastern concerns. The producer opted to follow the supply-demand fundamental in setting new offers while monitoring closely the Iran – -Israel war.

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

One of the factors discouraging Zhongjing from lifting their prices is the surprisingly softer PP contracts on the Dalian Commodity Exchange. 

“However, we still receive stable inquiries from regular local buyers, hence, we do not expect the spot market to retreat anytime soon. The upstream costs remained strong and as such, we prefer to protect the operating margins,” a source close to the producer added. 

Zhongjing Petrochemical was ranked China’s Top PP exporter in the first quarter of 2024 with total export volume exceeding 150,000 tons. The producer is on track to defend the title by the end of the year.  

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.