SINGAPORE (ICIS)--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.
From 5 December to 21:30 on 13 December, confirmed coronavirus infections at the cities of Ningbo, Shaoxing and Hangzhou stood at 213, according to the local health administration.
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 ordered on 9 December shutdowns of factories in the district, affecting production of a wide range of products - from medicine to chemicals such as intermediates, polyesters, dye stuff and agents.
Road and water transportation to and out of the district were blocked since 11 December.
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.
Logistics are shot given reluctance among truck drivers to enter affected regions.
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.
Focus article by Fanny Zhang
Additional reporting by Yvonne Shi and Anita Yang
Thumbnail photo: At the Ningbo-Zhoushan Port in Zhejiang Province, China. (Source: Xinhua/Shutterstock)
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