Pollution crackdown dents output in China's Shandong province
China's attempts to curb emissions from energy plants in Shandong province are putting small and medium-sized oil and chemical businesses under pressure as refineries struggle to comply with new standards. While random environmental inspections formerly scrutinised large state-owned facilities, the authorities' targeting of smaller companies has caused 30 independent refineries to shut since mid-July. Additionally, a number of chemical plants making propylene oxide (PO), PVC and rubber tyres in the region have stopped production, according to industry sources and market analysts. The amount of lost production is not known; however, China's imports of PO have risen 40% since the start of the year.

A man rides a scooter along a street in heavy smog in Liaocheng, Shandong. The government’s efforts to improve air quality have led to the closure of dozens of oil and chemical plants in the province. Photo: Reuters