Plants in Northern China shutdown on environmental control

It is reported that a number of agricultural film manufacturers in the area of Shandong, Hebei, Liaocheng in China have been ordered to shut down from 23 September to 3 October 2019 as part of the country’s effort to control the air quality ahead of the 70^th National Day celebration. 

Traders reported that trading activities in these areas have almost been stalled this week as a result. “Logistics companies are also off, hence, we might only see more movement in the post-holiday term,” a market source commented.

Market players widely expected that the demand condition in the post-holiday term might be relatively stable given the fact that converters have not been able to make any replenishment these two weeks.

In related Plant news, Qilu Petrochemical, which locates at Shandong province, has partially shut its plant also due to the same issue. The line B – HDPE unit with an annual capacity of 70,000 tons/year and the 120,000 tons/year LLDPE unit are affected. These units would resume operation on 3 October.