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For the fourth time this week, key Chinese PP producer – Zhongjing Petrochemical revised export PP offers upward on the back of reduced sales pressure stemming from a steady uptick in demand at home.

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

Optimism over a brighter economic outlook has been fueling trading sentiment on the Dalian Commodity Exchange throughout the week, which in turn, encouraged purchasing activities in the domestic spot market. 

“Although local buyers started to resist the constantly rising prices, we have depleted 70% of July’s allocation, freeing us from any sales pressure. Overseas customers remained reluctant. The spillover effect might take time to reach overseas markets,” said, a source close to the producer. 

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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