Price List: China’s Zhongjing opens fresh PP export offers after the long holiday

Zhongjing Petrochemical has opened fresh export PP offers after the weeklong Lunar New Year holiday with sharp increases compared to the last offers before the holiday.

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

The latest price list reflects the surge in crude oil prices and the firming local ground. However, it is expected that buyers in Southeast Asia might not be able to accept the new offers taking into account the also high shipping costs. 

“The export window remains narrow at the moment. Demand in the local market is acceptable, hence we might be focusing on selling domestically. In the meantime, we are monitoring the demand condition in South and Southeast Asia for the opportunity,” a source close to 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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