The 'biggest' factory exploded suddenly! The chemical market is soaring!

Remember the significant impact of the Xiangshui explosion last year?

In 2019, the Xiangshui explosion accident caused a major safety accident in Tianjiayi, one of the important domestic suppliers of m-phenylenediamine, which triggered a series of chain reactions among domestic chemical companies.

Recently, the core production of the domestic iohexol API and the supplier Stellite had a sudden flash explosion, which caused the company's production workshop to suspend production for three months. The industry impact may be more profound than we thought.

The largest domestic API manufacturer exploded suddenly! Discontinued for three months!

On July 28, Stellite issued an announcement that at about 19:10 on July 27, the company's crude iohexol production workshop in the Xianju Modern Industrial Concentration Zone had an explosion and caused a fire. The workshop of the explosion accident mainly produces crude iohexol. At present, the workshop is unable to produce normally, which is expected to have a direct impact on the production of iohexol raw materials in the Xianju plant.

The announcement shows that the Xianju plant's operating revenue of iohexol in 2019 was 360 million yuan, accounting for 27.49% of the company's revenue; gross profit was 130 million yuan, accounting for 23.52% of the company's overall gross profit.
On the 29th, Stellite’s latest announcement stated that the explosion had caused two deaths and that the workshop and production equipment were seriously damaged, and production has been suspended for self-examination.

According to the Insight database, there are currently 6 domestic companies that have obtained API approval numbers, including Stellite, Zhejiang Taizhou Haishen Pharmaceutical (acquired by Stellite in 2018), Zhejiang Haichang Pharmaceutical (a subsidiary of Beilu Pharmaceutical), Zhejiang Ang Likang Pharmaceutical, Guizhou Jingfeng Injection Co., Ltd., etc.
The main domestic suppliers of iohexol raw materials are Stellite, Zhejiang Taizhou Haishen Pharmaceutical, a subsidiary of Stellite, and Zhejiang Haichang Pharmaceutical. Haichang Pharmaceutical is currently in suspension due to the expansion of its production line. In other words, after the explosion, there is basically only one iohexol raw material manufacturer in Zhejiang Taizhou Poseidon Pharmaceutical.

Raw material supply may be hit hard! Related company stocks rose continuously!

In China, iohexol is also the largest iodine-containing contrast agent. According to PDB data from China Pharmaceutical Industry Information Center, the domestic iohexol market in 2019 was 2.709 billion yuan, a year-on-year increase of 7.54%.

The downstream domestic customers of Stellite Iohexol API are mainly Yangzijiang Pharmaceutical, Beilu Pharmaceutical and Hansen Pharmaceutical. Affected by the news, on the 28th, Stellite lowered its limit, and Beilu Pharmaceutical rose 15% on two days.

The situation of giants is frequent, and the demand is picking up! The chemical market rises!

Originally, the chemical industry market has been relatively sluggish in the past two months, and there has not been a real rebound in demand, which has caused the market to respond flatly.

However, this week, due to the steady increase in crude oil prices and the sudden difficulties of a number of raw material giants, the chemical market suddenly rose like a cardio-stimulant.

glycerin:
The price of crude glycerin abroad has risen on the outside, and the price of domestic glycerin has risen slightly. Today, the reference of spring gold and green treasure is around 5000-5500 CNY/ton.

It is worth mentioning that the accident may affect the price of glycerin. According to the synthetic route of iohexol, iohexol uses 5-nitroisophthalic acid as the raw material to obtain the intermediate 5-(acetamido)-N,N through esterification, reduction, iodination, acetylation, etc. '-Bis(2,3-dihydroxypropyl)-2,4,6-triiodo-1,3-phthalamide, glycidol and the above compound condensation.

Propylene:
Today, the price of propylene is generally raised by RMB 50-100/ton.

glacial acetic acid:
Recently, the news of Nanjing BP’s accidental shutdown has given a boost to the weak market from the second half of last week. The East China market has started a new round due to the impact of device parking on the premise that there is not much spot circulation due to the delivery of pre-orders. Price increase.

Butadiene:
The recent strong performance of crude oil and naphtha market has boosted the internal and external market of butadiene to rise. It is difficult to find low-priced sources in the market and it is difficult to realize low-priced sources of replenishment. Domestic intermediaries are reluctant to sell. Although some devices were restored during the week, manufacturers’ export sales were limited, and suppliers’ low inventories supported the continuous increase in supply prices. In addition, Sinopec’s supply prices were raised twice in a row, driving market conditions to rebound quickly. Although the synthetic rubber market showed a weak market during the week, the downstream inquiries for high-priced raw materials were limited, but there was still some just need to buy passively to cover positions, short-term bullish expectations stimulated downstream inquiries, and transaction prices were relatively strong. It is expected that the butadiene market will remain strong this week, and focus on the follow-up of transactions.

The market pattern may change! Two levels of market differentiation!

The production capacity and output of Stellite Iohexol API ranks first in China. As of the end of last year, the company has established cooperative relationships with major domestic manufacturers of iodine contrast agent preparations such as Hengrui Pharmaceutical, Beilu Pharmaceutical, and Yangzijiang Pharmaceutical. The explosion may trigger a chain reaction, and the market structure of iohexol and contrast agents may change.

In addition, due to the recent emergencies, the market of chemical raw materials has divided into two levels. There are TDI and MDI, which continue to skyrocket due to emergencies; there is glacial acetic acid that needs to pick up due to sudden shutdowns of installations; there are also epoxy resins that have been trying to increase prices but are underpowered; after waiting for many months, they finally see the hope to increase Soda ash; there is also caustic soda that continues to decline this week after crazy.