Price List: Zhongjing rollovers export PP offers amid stabilizing local market

Key Chinese PP producer – Zhongjing Petrochemical decides to keep export PP offers unchanged from the previous week, pulling support from a stronger futures market, which has been fueling trading sentiment in local market. 

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

Key PP contracts for September delivery on Dalian Commodity Exchange gained CNY60/ton at the opening hours on Monday, 19 June 2023 thanks to the rebound on the energy complex and optimism surrounding potential economic stimulus from the government. 

A source close to the producer said that the price decision has not taken into account the persistently sluggish overseas demand and heightened competition from other origins.

“Our buy ideas are $100/ton below the producer’s price list. The macroeconomic conditions remain weak, hence, we are not confident that the market could stabilize at the moment,” a Southeast Asian buyer commented on the price list.

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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