Price List: Zhongjing announces the third price list in a week with increases

For the third time this week, Zhongjing Petrochemical makes adjustments on export PP offers, the latest with $10/ton hikes, citing the upward movement in the domestic ground and the resilient Dalian Commodity Exchange. 

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

Even though trading activities in the local Chinese market have somewhat dimmed toward the end of the week resulting from the piling buyer resistance, Zhongjing claimed to have been free from inventory pressure after satisfactory transactions were achieved earlier this week.

“Overseas customers are showing limited interest in our new offers. The market might need more time to comprehend the uptrend,” said, a source close to the producer.

However, Asian customers are taking a step back from the market following news of softer deal prices for import homo-PP in China on the previous day. 

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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