UPDATED: Petchem plants to be affected by G20 Summit

As CommoPlast reported earlier, world leaders will meet in Hangzhou, China to discuss issues facing the global economy on 4-5 September 2016; municipal government of Ningbo and Shanghai has given orders to the manufacturing sector within the area to adjust production rate in an effort to improve air quality during the Summit. Among this, petrochemical plants are also ordered to either shutdown or reduce operation rate for a period from 24 August to 6 September 2016.

CommoPlast has extracted a list of polypropylene plants from an official statement, which are due to implement the temporary measures to reduce air pollution as following.

With the measures taking place 14 days, market participants are raising concern over state of PP supply in early September with a trader in Ningbo said, “We expect the producers to ramp up operation rate in the near term to cover the estimated production loss during the G20 Summit. This however, might impact more on futures trading.”

Another market source added, “It is difficult to estimate the impact on the market at the moment as several coal based projects are due to come online soon, bringing additional supply. Meanwhile, the traditional demand for homo-PP yarn might return during that period, hence we do hope to see an uptick in market prices.”