Environmental issues forced thousands plants shutdown in Shandong, China

According to market sources, the Chinese Environmental Bureau has issued an order to shutdown approximate 2000 factories in Juxian, Shandong province in light of tightened environmental regulations.

Most of these companies are active in plastics production, granulating production, blow film and colour printing. These plants might need to remain offline for one to two months to carry out waste management inspections and obtain qualified certification before resuming production. Other than Juxian, converters in other areas including Linyi and Henan are facing the similar situation.

Though a majority of these factories are categorised in the small to medium scale, the cumulative impact could be sufficient to create a hit on demand. Therefore, many local and overseas sellers are working to estimate the extent of the effect before making any major decision.  

Meanwhile, buying momentum in China appears to be cooling down from which more sellers are offering small discount on the cargoes to entice purchasing activities.