Price List: Zhongjing Petrochemical increases its export price as the Lunar New Year close approaching

China’s Zhongjing Petrochemical decided to increase its export prices for its homo-PP yarn and biaxially oriented polypropylene (BOPP) film by $5/ton from the previous price announcement. The price decision stems from reduced sales pressure after the producer managed to sell out more than 25,000 tons of cargo in January to the export market alone.

A source close to the producer added, “We are optimistic about the post-holiday demand outlook. Most local converters did not build lengthy inventory ahead of the Lunar New Year, which means these buyers would have to restock once they return to work.”

An inside source mentioned a slight improvement in operating profit margins compared to the past several months as the regional PP market climbs while the upstream propane costs hold steady. Throughout 2023, the propane-based maker suffered heavy losses, leading to substantial plant utilization rate cuts to just 50%.  

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

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 its 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.