Price List: Zhongjing Petrochemical keep export PP offers unchanged

On the first trading day of the week, Zhongjing Petrochemical has opened fresh weekly PP export offers at unchanged levels compared to the previous price announcement following the more stabilized domestic ground.

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

Although the total stocks in the local China market accumulated to the highest levels since April 2020 on 21 February 2022, most domestic producers here decided to maintain a firmer stance on spot offers in light of the strong upstream costs. 

“There are limited rooms for us to lower prices any further at the moment. Southeast Asian customers are placing bids at very low levels, which we could not accept. We prefer to monitor further market movement,” a source close to the producer said. 

In the week ending 18 February 2022, propylene CFR China gained $15/ton due to supply tightness following a series of crackers cutting operating rates and the fire incident in South Korea’s YNCC.  

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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