On 18 May, the average PO price in China dropped by yuan (CNY) 550/tonne ($86/tonne) from the previous session to CNY11,600/tonne DEL (delivered), according to ICIS data.
Prices may come under further pressure until early June due to an expected lengthening of supply as some Shandong producers have delayed their plant turnarounds to second-half June after the Shanghai Cooperation Organisation (SCO) summit in Qingdao, Shandong province, on 9 June.
The Chinese government will impose restrictions on petrochemical plant restarts and shutdowns around the Qingdao area during this period due to safety concerns, market sources said. Plants are required to maintain their operating status, i.e. continue running if they were already running or remain shut if they were already shut, the sources said.
In the spot import market, average PO prices declined by $55/tonne week on week to $1,495/tonne CFR (cost & freight) China on 18 May, ICIS data showed.
($1 = CNY6.38)