Price List: Zhongjing Petrochemical hold export PP offers stable, eyes price rebound

Zhongjing Petrochemical has surprisingly rolled over its export offers for PP cargoes from the previous week despite an uptick in purchasing activities in the local Chinese market. The conservative pricing decision signals the producer’s inclination toward inventory depletion ahead of the long Lunar New Year holiday instead of immediately boosting margins.

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

“Responses from the overseas market remained subdued, however, we are assessing the possibility of lifting export offers considering the rebounded local market in recent days,” a source close to the price commented.

Zhongjing Petrochemical continues to operate at reduced rates, hence the prolonged absence of homo-PP injection, fibre, and random grades. 

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.