Influence of Qingdao SCO Summit on the SM Industry

The SCO Summit will be held in Qingdao from June 9 to June 10. Qingdao announced Work Programme on Environmental Quality Assurance for the SCO Summit. Taking the main stadium as a center, three regions were delimited, namely core area (50km radius), strict control area (100km radius) and control area (300km radius).

Construction work, house breaking and decoration work are required to stop in the core area and the strict control area. Earthwork, muck transport and demolition work are forbidden in the control area.

50km radius: Qingdao

100km radius: Qingdao, Rizhao, Weifang, Yantai

300km radius: Qingdao, Rizhao, Linyi, Weifang, Yantai, Weihai, Zibo, Dongying, Laiwu, Binzhou, Tai’an, Zaozhuang, etc.

Temporarily, no shutdown or operating rate reduction plans are heard in the SM industry.

There are 7 SM producers in Shandong Province, scattering in Qingdao, Zibo, Dongying and Heze respectively. According to SCI’s survey, the operating rate at Sinopec Qingdao Refining may be cut, yet others will maintain normal production. The 500kt/a unit at Qingdao Haiwan Chemical, which attracts much attention in the industry, won’t be affected.

Transportation of SM in Qingdao Was Basically Forbidden.

Though the supervision will be strict during the Summit, producers in Zibo, Heze, Dongiyng, etc. can sell goods normally. Sinopec Qingdao Refining and Qingdao Haiwan Chemical, which are located in Huangdao, Qingdao, can transport normally in theory with some relevant procedures. However, automobile transport at the two enterprises will stop to avoid risks. Sea transport at Qingdao Haiwan Chemical will basically cease in H1 of June.