Fresh covid-19 outbreak has caused delay in transportation of petrochemicals in China’s eastern province, reports ICIS.
Fresh cases
Tightening restrictions at factories and ports in Zhejiang following a fresh COVID-19 outbreak are causing delays in transportation of petrochemicals in China’s eastern province.
District of Shangyu in Shaoxing
The district of Shangyu in Shaoxing has been the hardest hit, accounting for about two thirds of the total recorded infections. To contain the outbreak, Shangyu’s local government shut factories in the district, affecting production of a wide range of products.
Road and water transportation to and out of the district were blocked since 11 December.
Ningbo, the Zhenhai port
In Ningbo, the Zhenhai port suspended land transportation since 7 December following a lockdown of Zhenhai district, but shipping operations remain normal, industry sources said.
For major producer Zhenhai Refining and Chemical Co (ZRCC), deliveries from its Ningbo manufacturing site have slowed down amid renewed restrictions, a company source said, but actual production was not affected.
ZRCC has a 23m tonne/year refining capacity and produces 1m tonnes/year of ethylene.
Lowered operating loads
The transportation backlog, if prolonged, will cause a build-up of inventories among producers, market sources said.
Some producers in Zhejiang have lowered operating loads at their plants.
Zhejiang Yisheng New Materials has cut the run rate at its 3m tonne/year purified terephthalic acid (PTA) plant in Ningbo to 50%-60% from 90% previously, a company source said.
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Source: ICIS
