Sixteen chemical companies shut down, shocking the chemical market

Prices of Raw Materials Soared

Tianjiayi in Jiangsu Province is the second largest manufacturer of m-phenylenediamine in China. The explosion will affect the market capacity of m-phenylenediamine by about 25%, which will directly lead to the crazy price increase of a variety of raw materials. Prices of some raw materials even doubled; some raw material suppliers are even in short supply and thus stop quoting.

It is reported that the explosion will affect about 25% of the market capacity of m-phenylenediamine, directly causing price rise of a variety of raw materials, with the price of some raw materials even doubling. Some materials will even be in short supply, making suppliers stop quoting. At present, thousands of enterprises in several provinces have shut down, including Henan Province, Jinhua in Zhejiang Province, Yancheng, Suzhou, and Suqian in Jiangsu Province, Weifang in Shandong Province, and Dongguan in Guangdong Province. The major impact of the accident and the emergency shutdown of some enterprises led to the price rise in Dye and some raw materials. As the largest m-phenylenediamine supplier, Zhejiang Longsheng recently increased its price by the limit three times in four days due to the price rise of the core intermediate m-phenylenediamine. Chemicals prices fluctuate wildly, with the price of some products even doubling.

Shandong: The price of liquid chlorine increases by 200 CNY/ton, 200-400 CNY/ton in tank truck, and 300-500 CNY/ton in bottle car. Some enterprises in Shandong reduce the supply of liquid chlorine and the price of Caustic Soda falls again. Accordingly, the price of liquid chlorine increases.

Hebei: The price of liquid chlorine has increased by 100-200 CNY/ton, and it is 260-400 CNY/ton in northern Hebei Province. The price of liquid chlorine in Cangzhou is 200-300 CNY/ton, sometimes high at 500 CNY/ton. The price rise is due to short supply in Shandong enterprises.

Jiangsu: Liquid chlorine is in stable price. The liquid chlorine price is 1-50 CNY/ton. Production cuts and shutdowns have appeared in enterprises and downstream companies. Although safety inspections are underway, the current supply is relatively sufficient and the market is not yet positive.

Henan: The price of liquid chlorine is stable with a decline. The market price is high at 300-400 CNY/ton and low at 100-200 CNY/ton. The price is declining and the downstream purchase volume has reduced, but because the price of caustic soda has decreased, the price of liquid chlorine is not likely to fall .

The price of polymerization MDI in Wanhua Chemical Group Co.,Ltd will be increased sharply again in April. The list price of Wanhua Chemical in China's polymerization MDI distribution market is 17,800 CNY/ton (2,600 CNY/ton higher than the price in March), and the list price in the direct selling market is 18,300 CNY/ton (2,800 CNY/ton higher than the price in March); pure MDI is listed at 26,200 CNY/ton (1,500 CNY/ton higher than the price in March). This is the third price hike for Wanhua Chemical MDI since the start of 2019. MDI, the upstream raw material, has increased significantly. At present, products such as polyurethane TPU also have a follow up effect due to the rising cost. Since the Spring Festival, the price of pure MDI has risen sharply twice in a row and the supply is tight, leading to the rising cost of polyurethane TPU products. A number of dye intermediate enterprises is the real risk-taker of the explosion accident rather than Wanhua Chemical. After nationwide security inspection, enterprises in some areas will face emergency shutdown.