Price List: China’s Zhongjing lifted export offers twice this week

Zhongjing Petrochemical has once again up-adjusted export offers for PP cargoes, adding another $20/ton after implemented $10/ton hike earlier this week. Stronger futures market and brighter local demand outlook are among the key supports for the price decision.

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

Zhongjing Petrochemical is not the only Chinese suppliers lifting export offers this week. Many other Chinese suppliers are not even interested in offering to the export market, citing the cutthroat competition from South Korean cargoes. 

“We expect the local market to have more movement in the coming week. At the moment, everyone is not aggressive in lifting domestic prices, yet, to monitor how quickly the local demand could recover,” a source close to the producer commented. 

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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