China's LG Yong Xing Chemical is expected to lower the operating rate of its acrylonitrile-butadiene-styrene (ABS) plant in Ningbo during the G20 summit, as per sources in Platts.
The summit will be held in Hangzhou, Zhejiang province, from September 4-5, and petrochemical plants in surrounding cities have been asked to reduce production in order to ensure improved air quality during the meeting. The plant has the capacity to produce 700,000 mt/year of ABS and usually operates at about 100% of capacity. However, during the G20 summit, operations may be lowered to 50-60%, a source said.
As a result of the anticipated shortage of supply, the domestic price of ABS had risen by about Yuan 500/mt over the past two weeks to around Yuan 11,000/mt, the source said.