Shell's (SHEL) petrochemical joint venture with China's CNOOC plans to shut a steam cracker in southern China due to disruptions in feedstock supplies, Reuters reported Friday, citing two people with direct knowledge of the matter.

The joint venture, CNOOC and Shell Petrochemicals, or CSPC, will close its cracker in Huizhou city in Guangdong province with an annual capacity of 1.2 million metric tons, the sources reportedly said.

In a notice to a local customer seen by Reuters, CSPC said supplies of polyethylene would be suspended from March 5 for an unspecified period due to a "facility shutdown."

Shell did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)