The explosion of Jiangsu Tianjiayi likely reduces supply of m-Phenylenediamine by 29 thousand tons 04-17-2019

An explosion in a chemical factory, located in Xiangshui County, Jiangsu Province, killed 47 with 90 injured on March 21st, 2019, according to the state media.

The explosion was so intensive that the CSN (China Seismological Network) could even observe the vibration, which was equal to a 2.2 magnitude earthquake.

The main factory of this explosion is Jiangsu Tianjiayi Chemical Co., Ltd., founded in April, 2007, with 195 staffs. The main production of this factory is chemical raw materials and chemicals, including hydroxybenzoic acid and anisole. The main explosive substance leading to this serious blast was benzene. The general manger of Tianjiayi Chemical Co., Ltd., was injured during the explosion and was being cured. The people involved were under control by the police.

Jiangsu Tianjiayi broke regulations many times

Jiangsu Tianjiayi Chemical Co., Ltd., was against regulation many times. The company was fined for the violation of the Management System of Air Pollution Prevention and Control as well as the Management System of Solid Waste from the state Environmental Protection Agency in September, 2017. In the same year the company faced another forfeiture in June for breaking the rule of the Management System of Solid Waste and the system of Environmental Impact Assessment.

An immediate rescue and evacuation was taken after the explosion. The people living in the areas near the accident spot were evacuated to the safe zone. Classes were suspended in schools and kindergartens for the occasion.

The cause of the blast was under investigation, but concerns about chemical pollution in the environment were sparked. According to the characteristics of contamination in this explosion, the environmental air emergency monitoring indicators were confirmed as organic pollutants, including sulphur dioxide, nitrogen oxide, benzene, toluene as well as xylene. However, the drinking water safety of the locals was not affected by the pollution. Relevant measure, such as blockade of the inland rivers, was taken immediately.

By the explosion an alarm is sounded in terms of the safety issue at chemical plants in China. According to a report from CCTV. com, the General Office of the State Administration of safety supervision once pointed out 13 potential safety hazards in Tianjiayi chemical plant on February 8th , 2018, which could be one of the suspected causes of this explosion. What was worse, Tianjiayi factory had been fined time after time by the county environmental protection authority and the city environmental protection authority for disobeying the environmental protection ordinance.

Although special attention to major accidents was emphasized during the 19th National Congress in China, it was evident to see that individual groups still did not put the safety in production in the first place.

After the occurrence of accident the state warned the heads and security staffs of the chemical plants and factories from the whole Jiangsu Province with an education activity, rapidly inspected the safe production of dangerous chemicals and screened thoroughly all kinds of hidden danger.

The company is the second biggest producer of m-Phenylenediamine in China

As the second biggest manufacturer of this chemical, Jiangsu Tianjiayi Chemical Co., Ltd. could produce 17 thousand tons of m-Phenylenediamine (a type of dye intermediate) per year. The explosion directly causes a shortage of supply of m-Phenylenediamine with an increasing price, which also leads to a sharp growth in the price of disperse dyes of downstream.

In addition, due to the location of Tianjiayi Chemical Co., Ltd, the accident also brought a delay of resumption of work to the dye intermediate factories in the north of Jiangsu Province. The nearby industrial sites will be also affected in the aspect of the price of disperse dyes and reactive dyes.

Generally 99 thousand tons of m-Phenylenediamine can be produced per year in China. The main manufacturers are respectively Zhejiang Amino Chemicals Co., Ltd. with 65 thousand tons per year, Sichuan Hongguang Special Chemical Co., Ltd. with 17 thousand tons per year, and Jiangsu Tianjiayi Tianjiayi Chemical Co., Ltd. with 17 thousand tons. The accident of Tianjiayi affects around 20 percent of market capacity of m-Phenylenediamine with a rising price of the chemical. 

The capacity of m-Phenylenediamine is expected to decrease to about 70 thousand tons

According to the head of consultation department of Qicaiyun (an e-commerce company of dye products and chemicals), on the day of the accident dye intermediate companies stopped receiving orders. Just for two days a growth of the actual transaction price of disperse dyes already showed up, in the meanwhile the demand of disperse dyes were also witnessed with an increase in their Wechat transaction group. At the moment, the EXW price of m-Phenylenediamine has increased from 47 thousand yuan per ton to 100 thousand yuan per ton. Besides, the price of disperse dyes also started to ascend from March 24th.

As for the supply of raw materials, the theoretical capacity of m-Phenylenediamine is expected to decrease in 2019 to about 70 thousand tons from 99 thousand tons after the explosion in Tianjiayi, with an expected consumption of 80 thousand or so tons in 2019.

Moreover, companies in the nitrification and hydrogenation reduction industry will be inspected significantly owning to the accident, which results in a reduction of supply and an increase of price of dye intermediates.

It is reported that some relevant dye enterprises in the ecological chemical plant in Xiangshui, Yancheng City, Jiangsu Province has been in a shutdown state, such as Jiangsu Annuoqi Chemical Co., Ltd. and Jiangsu Zhijiang Chemical Company.

For more information about China’s chemicals market, please have a look at our Titanium Dioxide China Monthly Report


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