On 9 July, the Ministry of Public Security announced transportation restrictions for dangerous chemicals in Beijing and all Olympic co-host cities. In Beijing and Qingdao, the restrictions would be in effect from 9 July to 30 September; while in Tianjin, Shanghai, Qinghuangdao, and Shenyang, the ban would be in effect from 9 July to 31 August.
Benzene, toluene, and xylene now have to be transported via specified routes in north China, and only after obtaining special permission certificates from the government. However, the majority of small traders and end-users were finding it difficult to get permission certificates for routes in cities in north China near the Olympic Games.
Aromatics markets reported slow trading, as many small downstream converters from paints and coatings were forced to shut down or reduce operating rates. Some traders stopped trades altogether. Producers are facing high stocks of toluene due to weak demand from traders and end-users, and Sinopec Beijing sales branch cut its price offer to encourage sales.
The current transportation ban has increased transportation costs and slowed trade in the north China market, but has had limited impact in the east and south China markets.