Price List: Zhongjing maintains export PP offers stable as demand fails to keep up

For another week, key Chinese PP producer – Zhongjing Petrochemical rollover export PP offers amid the rising international market. The modest price decision, according to market sources, hinted at the lack of confidence in the market outlook.

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

Key PP contracts on Dalian Commodity Exchange opened the week on a soft note, signalling another day of sluggish trading in the local market. A source close to the producer said the company is willing to negotiate with serious buyers, though any steep discounts are unlikely at the moment.

The bullish sentiment in the Chinese market has been losing momentum for several trading days and the primary factor supporting the firming trend is the strong upstream costs. The market might remain in the tuck-of-war in the immediate terms. 

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. 

Want to contact this seller? Let us know.