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The Shanghai’s Quality and Technical Supervision Bureau has required all restaurants and food delivery companies in three districts including Changning, Pudong and Putuo to stop using disposal PP food containers starting June 2018. It is proposed that laminated paper box should be used as a replacement. 

Companies that fail to follow the eco-friendly delivery packaging rule might face penalties including cancelled subsidies, lowered rankings and suspension of service.  

According to statistics, the food delivery services in Shanghai create around 45,000 tons of non-biodegradable waste from packaging last year and the latest regulations aim to reduce this number by 75%.

If the result from this program proved to be effective in Changning, Pudong and Putuo, the Chinese government might expand the effort to other cities in the country. 

Chinese players are watching out for the potential impact on the PP market in the coming weeks though many remain optimistic considering the persistent lacking supply. “However, demand for LDPE lamination might start to pick up,” a market source said.