Price List: China’s Zhongjing resumes export PP offers on a strong note

After four consecutive downward price adjustments before the Golden Week, Zhongjing Petrochemical breaks the down-cycle by lifting export PP offers right after the holiday by $35/ton to reflect the rising Dalian Commodity Exchange at home.

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

Undeniably, the producer’s latest price list is way above market acceptance in Southeast Asia at the moment. The increases coupled with the depreciation of the local currencies and the lingering lethargic end-product demand push buyers here to the sidelines. 

“The export opportunity window remains narrow this week and the plan is to continue to focus on the local ground. We received some inquiries from South Asian buyers and are currently in the negotiation process,” said, a source close to the producer.

China's market kickstarted the post-holiday on a strong note, riding on the surging crude oil prices. Trading sentiment in the local market, however, wanes quickly. The market has not taken its eyes off the comfortable PP stocks observed since late September on the domestic ground.  

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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