Price List: Zhongjing lifted export PP offers following the rebound in local market

Chinese key PP producer – Zhongjing Petrochemical promptly responded to the surging Dalian Commodity Exchange on the second trading day of the week by lifting export offers by $5-10/ton, gaining back all the losses earlier this week.

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

Key PP and LLDPE contracts for May delivery ended the trading day gaining CNY105/ton and CNY140/ton respectively on expectations that the government would introduce more economic stimulus during China’s Two Session Congress Meeting on 5 March 2023. The development also boosted the trading sentiment in the domestic spot market in China.

“We received a better number of inquiries from local buyers even at CNY100/ton higher than the previous day. Overseas customers are still reluctant to make additional purchases, however, we do not think the market has much room for further reductions,” a source close to the producer added.

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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