Price List: Zhongjing maintains export PP offers unchanged for another week

Key Chinese PP producer Zhongjing Petrochemical once again maintains export PP offers stable to size up market responses amid softening purchasing interest among overseas buyers, while bullish expectations over fresh stimulus from the Chinese government keep local sentiment upbeat.

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

Key PP contracts on Dalian Commodity Exchange kickstart the new week on a rangebound while the market awaits results from the government meeting this Wednesday to gauge the economic outlook. 

Over the past week, sales results in the export market have been disappointing, yet the low stock levels discourage the producer from making any downward adjustments. At the time of this report, market players are yet to provide conclusive feedback on the offers as many are opting to remain on the periphery waiting for offers from other suppliers to get an overarching picture of the current market trajectory.

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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