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Games has little impact on China MEG market |
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The transportation restriction during the Olympic Games is likely to have little impact on the Chinese monoethylene glycol (MEG) market.
China Ministry of Public Security has announced a transportation restriction which forbids non-Beijing trucks from entering the capitol except the ones carrying farm produces or others having special passes from 1 July to 20 September.
Beijing Eastern Petrochemical has a 40,000tonnes/year unit which is one of the two MEG plants in the city. The other one is a 70,000tonnes/year line under the umbrella of Yanshan Petrochemical. Both belong to Sinopec.
Beijing Eastern planned to shut down for three months from 20 July, leading to approximately 10,000 tonnes loss of output. Yanshan petrochemical’s MEG is mostly for captive use, hence not affected by the transport ban.
Most MEG units in China are located in the eastern, southern and north-eastern regions of the country. Consumption also centres in east and south China. As such, the capacity lost of Beijing Eastern during the Games would have little impact on China MEG market.
Above 70% of MEG consumption was imported in 2007.
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