Price List: China’s Zhongjing lifted export offers amid firming local market

Zhongjing Petrochemical has reportedly announced fresh export offers for homo-PP with increases from the previous week on the back of the firming domestic ground and reduced inventory pressure.

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

The new price list undeniably lacks competitiveness not only against South Korean materials but also other Chinese sellers. In fact, both Hengli and Donghua Petrochemical lowers their export offers at the beginning of the week to $1175/ton and $1180/ton respectively, all based on FOB China terms. 

“Demand overseas is weak and in addition to the hiking shipping costs, our offers are not attractive, hence we continue to focus on the local ground until the logistics smoothen,” a source from the producer said.  

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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