Price List: China’s Zhongjing keeps export PP offers stable amid lukewarm market

Zhongjing Petrochemical has opted to sustain its stable export pricing strategy, mirroring the rates observed over the past five weeks. With only two trading days remaining before a five-day holiday hiatus in the Chinese market, the company has chosen continuity over adjustment.

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

Despite encountering subdued demand in the export sector, a source close to the company expressed a measured approach, noting, “While inquiries have not surged, there is also no urgent need to revise pricing downward. The decision to maintain current pricing levels aims to facilitate further engagement with customers and gather additional feedback before contemplating any adjustments.”

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.