Price List: Zhongjing Petrochemical maintains export PP offers unchanged amid softer DCE

Zhongjing Petrochemical reportedly shrugged off the softer Dalian Commodity Exchange to roll over their export PP offers from the previous week, leveraging the upward momentum in overseas markets.

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

Over the past week, the producer has been receiving an increased number of inquiries from overseas customers and although transactions are thin, this development signals a possible reopening export window.

Meanwhile, the strong RMB currency continues to pose a challenge for the export market. A source close to Zhongjing added, “Temporarily, the company will closely monitor the market situation and make price adjustments as necessary. Additionally, price negotiations are available upon serious discussion with buyers."

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.