Road ban in Ningxia have no effect on local PP, PE market; PVC might see speculation

In line with the 60th anniversary of the establishment of Ningxia Muslim Autonomous Region, the local government announced the road ban on all dangerous goods through Ningxia from 15 September to 24 September 2018. All transportation companies have been advised to adjust the delivery schedules according to the regulations.

The road ban is expected to have no effect on the PP and PE businesses, sources said, as these materials are not categorized under dangerous goods. However, products such as carbide, methanol and other chemicals e.g. deep processing of crude benzene, deep processing of coal tar will be impacted.

Players are expecting to see some minor speculation on the local PVC market as a result of the restricted flow of carbide feeds throughout the period of 10 days. “Any upward movement might not be sustainable,” a buyer commented while adding that local PVC market is not strong at the moment despite the persistent supply tightness.