Shandong Bohi Industry Co Ltd, a major Chinese soyabean crusher, has suspended operations at two plants because of delays in soyabean imports, sources said on Friday, amid growing worries about tightening supplies due to safety checks at the country's ports. The latest plant suspension in China has further contributed to tightening supplies of soyameal in the south, causing another major jolt to the world's largest soyabean market after major crushers shut plants due to delayed cargoes in August.
"The delay is affecting regional supplies now. But if it continues and spreads to a larger scale, it will have a major impact nationwide," said Li Lifeng, an analyst with industry portal cofeed.com. The plants in Zhanjiang in Guangdong province and in Beihai in Guangxi halted operations as they ran out of beans after failing to get an import permit, an executive at another crusher who spoke to people at the two plants said.
Li Lifeng, the cofeed analyst, said she had spoken to a worker at the Zhanjiang plant, who confirmed the suspension. An employee at the Beihai plant confirmed to Reuters that operations stopped a few days ago, but she did not know the reason. The company, based in Shandong, did not respond to requests for comment. The company crushes 8 million tonnes of beans a year.