Price List: China’s Zhongjing lifted export PP offers on reduced pressure

Zhongjing Petrochemical has reportedly lifted weekly export homo-PP offers by $25/ton claiming higher upstream costs and reduced inventory pressure after deciding to take the 1 million tons/year PP unit offline last week. 

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

Zhongjing Petrochemical’s PP plant operates using feeds from the propane dehydrogenation (PDH) unit. As CommoPlast reported earlier, the propane contract price for March loading from Saudi Aramco surged $120/ton to $895/ton FOB Saudi, putting tremendous pressure on downstream operators. 

“At the moment, we are not having a lot of spot cargoes due to the shutdown. The production costs are rising, and we expect this trend to persist. We have yet to decide when to restart the production, but hope to secure some orders for April loading,” a source close to the producer said. 

Buyers in the nearby Southeast Asian market remain calm on the first trading day of the week to monitor further development in the Russia-Ukraine conflict. Some traders with remaining on-hand cargoes continue to offer at unchanged levels from last week at $1320/ton CIF Vietnam for Chinese materials, creating high competition for sellers, who wish to lift prices.  

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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