BayiChem is seized, and domestic production of nitrochlorobenzene will drop

On December 28, 2020, it was reported that Anhui Bayi Chemical Co., Ltd. ("Bayi Chemical"), the largest domestic manufacturer of nitrochlorobenzene, was suspected of producing hazardous chemicals without a license. The enterprise safety production license expired on November 6, 2020 and was cancelled. The application for renewal was not approved.

Judging from the reporter’s visit on December 23 and 24, 2020, Bayi Chemicals insiders still claim that they are "always in production." At the same time, a variety of hazardous chemical vehicles frequently enter the factory area, and they are inserted in front of the logistics door. The list also shows that many hazardous chemicals are being shipped out. According to incomplete statistics, the hazardous chemicals suspected to be produced and used by Bayi Chemical include p-nitrochlorobenzene (referred to as "p-nitro" in the industry), p-AMINOPHENOL, p-nitrophenol, hydrochloric acid, chlorobenzene, and pure benzene. , gasoline, diesel, etc., these chemicals are in the national hazardous chemicals catalog.

On the second day after the report, on December 29, 2020, the Bengbu Emergency Management Bureau has sealed the inlet of Bayi Chemical’s production equipment. At present, only Bayi Chemical is allowed to consume stock materials and cannot add new materials. After the stock materials are consumed, the next step of dismantling will proceed.

According to the Bengbu City’s “Delisting and Entering the Park” plan, Bayi Chemical’s old plant on Tushan Road should be fully closed by the end of 2020, and its hazardous chemical production safety license expired on November 6 last year and was cancelled. , The application for renewal was not approved, and the reason given by the Emergency Management Department of Anhui Province was "there are no conditions for safe production."

It is understood that due to the impact of the epidemic, Bayi Chemical's new plant in Mohekou Industrial Park in Bengbu City could not be completed as scheduled. In the future, there may be production gaps in the production of the old plant and the relocation of the new plant.

Nitrochlorobenzene is an important intermediate in the production of pesticides and pharmaceuticals. The domestic annual production capacity of nitrochlorobenzene is about 830,000 tons, and the market size is about 6 billion yuan. Bayi Chemical is the largest domestic manufacturer of this product. According to CICC's November 2020 research report, Bayi Chemical has an annual production capacity of 320,000 tons, accounting for approximately 39%.

In November last year, CICC pointed out in a research report that the price increase of p-nitrochlorobenzene is expected to continue until the first half of 2021. Recently, Bayi Chemical is still under construction due to the aging of its equipment. The phased Bayi Chemical is not only unable to sell p-nitrochlorobenzene, but also needs to purchase from the market to produce the pharmaceutical intermediate p-aminophenol.

CICC judges that the fastest time for the new Bayi chemical plant to be put into operation will be in the second quarter of 2021. The current price increase cycle will start in September and is expected to last until the first half of next year. The price of p-nitrochlorobenzene is estimated to increase by 1,000 CNY/ton.