Price List: Zhongjing Petrochemical stable PP export offer approaching Lunar New Year

Zhongjing Petrochemical (China) has maintained its export PP prices for homo-PP yarn and BOPP film at $945 and $950 FOB China respectively. The calculated decision was taken after slow movements in the Chinese domestic and futures markets.

More buyers have gone off on holidays and are making preparations to usher into the Lunar New Year, resulting in a less active market.

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

“We expect a slower market stretched till the end of this week as more and more buyers will be out of office for the long holidays,” a close source commented.

In spite of the purchasing activities' inertia, the rising upstream costs coupled with the renewed shipping crisis might be sufficient to lock the market onto a stable to firmer track in the near term.

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.