The supply situation of chemical products in China is more turbulent than in the past 10 years. A series of new and stringent anti pollution measures have forced thousands of chemical plants in China to close permanently or temporarily. From the chemical partners, we see the new reality facing the Chinese chemical industry: shortage of raw materials, extended lead time and rising prices.
The main purpose of China’s “stop order” is to optimize the atmospheric environment and control the increasingly serious haze, especially in winter. Specific measures include stopping production and limiting production of industrial enterprises that may cause air pollution. This will affect the supply of chemical products in China.
Illegal dumping of chemical waste also affects clean factories
China is committed not only to reducing its notorious haze, but also to cleaning up the disposal of chemical waste. Traditionally, many parties have resorted to illegal dumping rather than paying high disposal prices (US $2000 per metric ton). The authorities are taking drastic measures to solve the problem. But the infrastructure is not in place to deal with all the garbage effectively. So it’s a vicious circle. If a factory cannot access the appropriate facilities for chemical waste treatment, it will be considered a violation of the regulations and will be closed down
There is also a random element. If a producer in an industrial park violates the rules, the Chinese authorities can temporarily shut down all facilities in the park: even for companies like us that have invested in state-of-the-art facilities. Even if you make 100% changes, if someone dumps garbage near your factory, you may still be shut down.
Of course, we appreciate the actions taken by the Chinese government on environmental issues. But as far as we know, the seriousness and speed of the new measures surprised everyone.
Be prepared to cope with rising chemical products prices and extended lead times in China
One thing you can be sure of in a volatile situation is that the price of chemicals will increase with the delivery time. We suggest that you place an order as soon as possible. Our factories in Jiangsu and Hebei have implemented most of the new regulations and are in full production. So is our contract partner in China. We are working day and night with our partners to control the situation and get the latest and reliable information. Evaluate the selection of our production partners and customers.
