Price List: Zhongjing raises export PP prices on rising futures market.

Following several weeks of maintaining export offers stable, Zhongjing Petrochemical cautiously lifted the new price list by $5/ton citing the stronger Dalian Commodity Exchange and the reduced inventory pressure.

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

The most traded PP contracts for January 2024 delivery rose sharply on the first trading day of the week on renewed optimism over fresh rounds of economic stimulus from the government and change in production schedules that lead to reduced homo-PP yarn availability in the local market. 

“We temporarily focus on producing homo-PP cargoes instead of PP random because of the comparatively better demand. As the overseas market remains firm, we started to receive inquiries on our cargoes, though buyers continue to ask for large discounts,” reported, a source close to the producer.

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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