A trader active in the PVC market added, “Factories in the Hangzhou area have been gradually reducing their operating rates since the May announcement that the G20 summit would take place in Hangzhou this year. However, we do not expect this to generate any major shift in the supply-demand balance as end product producers will be required to limit their activities along with polymer producers.”
A converter manufacturing plastic bottles stated, “The upcoming G20 summit in Hangzhou will limit production in the area as the government will be strictly enforcing environmental quality regulations. While several PET plants may be affected by production outages, we do not expect any major disruptions to the market as players will be able to plan their sourcing strategies in advance.”