Yesterday morning Qiantang New District announced that at 8:04, Hangzhou Qiantang New District Outer Section 6 A fire broke out in the warehouse of Hangzhou Dikai Chemical Co., Ltd. The warehouse area was 700 square meters, and the fire area was about 100 square meters. As of 8:56, all open fires had been extinguished and there were no casualties.
The chain reaction of the explosion accident in Xiangshui, Jiangsu Province on March 21 this year caused a huge shock in the market, and the chemical industry Product prices skyrocketed, and thousands of companies suspended production and restricted production. Nine months later, another accident occurred at a chemical company in Jiangsu and Zhejiang.
According to the reporter’s understanding, the company where the accident occurred produces more than 40,000 tons of disperse dyes annually and is one of the major manufacturers of dyes in China. Administrative Regulations” and the Anti-Terrorism Law of the People’s Republic of China have been subject to administrative penalties twice. Will this accident have an impact on the chemical market? Will it trigger a new round of production restrictions? What will be the trend of chemical products in early 2020?
A fire broke out in a chemical factory in Hangzhou, and the relevant company was fined twice this year
Yesterday morning, Hangzhou Fire Protection announced that at 8:00 on December 29, 2019, the Hangzhou detachment command center received an alarm that a deflagration occurred in the Hangzhou Dikai Co., Ltd. factory building in the sixth section outside Qiantang New District, Hangzhou. After receiving the alarm, the detachment command center immediately dispatched 8 squadrons to the scene for disposal, and the detachment full attendance headquarters took action. At 8:30, the fire was under control. At 8:56, the fire was extinguished. The cause of the fire is still under investigation. At 10:28, the Qiantang New District Management Committee reported: At 8:04 on December 29, 2019, a fire broke out in the warehouse of Hangzhou Dikai Chemical Co., Ltd. in the sixth section outside the new district. The warehouse area was 700 square meters, and the fire area was about 100 square meters. As of 8:56, all open fires had been extinguished and there were no casualties. The Qiantang New District Emergency Management Bureau, the Public Security Bureau, and the Fire Brigade have jointly launched an accident investigation, drawn inferences from one instance, and conducted hidden danger investigations for relevant enterprises within the new district.
According to the reporter’s understanding, Hangzhou Dikai Chemical Co., Ltd. is a Sino-US joint venture located on the Qiantang River in Xiaoshan, Zhejiang. The company was founded in 1994 with a registered capital of 24.82 million and operates The scope is the production of organic chemical dyes and intermediates. The company now has assets of more than 100 million yuan, a factory area of 7 hectares, more than 550 employees, and an annual production of more than 40,000 tons of disperse dyes. It is one of the major dye manufacturers in China. The 2017 annual report of Dikai Chemical Co., Ltd. shows that the company’s sales in 2017 exceeded 160 million yuan, net profit was nearly 24 million yuan, and total assets were 130 million yuan. Compared with 2016, the company’s total sales in 2017 dropped slightly by 10 million, but its net profit increased by more than 13 million, a growth rate of more than 100%. However, the company’s annual report last year did not disclose specific financial information.
It is worth noting that Hangzhou Dikai Chemical Co., Ltd. has been subject to two administrative penalties this year.
On the morning of January 16, 2019, police from Hezhuang Police Station were inspecting hazardous chemicals at Hangzhou Dikai Chemical Co., Ltd. located in Section 6, outside Hezhuang Street, Xiaoshan District, Hangzhou City. , it was found that 24.33 tons of nitric acid, 17 tons of sodium chlorate, and 19.325 tons of cyclohexamethylenetetramine were actually stored in the company’s special warehouse for hazardous chemicals. However, the company’s dedicated warehouse has not installed an electronic inspection system for perimeter entrances and exits. The Dajiangdong Industrial Cluster Branch of the Hangzhou Municipal Public Security Bureau decided to impose an administrative penalty of ordering correction and imposing a fine of 500 yuan in accordance with the provisions of paragraphs 1 and 2 of Article 78 of the Regulations on the Safety Management of Hazardous Chemicals.
On March 15, 2019, police from Hezhuang Police Station visited Hangzhou Dikai Chemical Co., Ltd. in Section 6, outside Hezhuang Street, Xiaoshan District, Hangzhou City, Zhejiang Province. When the company conducted an anti-terrorism prevention inspection, it was discovered that the company had the following problems: 1. No security monitoring center; 2. No access control device. The police then required the company to complete the rectification work before March 22, 2019. On April 25, 2019, when Hezhuang sent police to conduct a re-inspection of Hangzhou Dikai Chemical Co., Ltd., they found that it had not installed an entrance and exit control system. The Dajiangdong Industrial Cluster Branch of the Hangzhou Municipal Public Security Bureau decided to impose an administrative penalty of RMB 1,500 on Hangzhou Dikai Chemical Co., Ltd. in accordance with the provisions of Article 91, Paragraph 2, of the Anti-Terrorism Law of the People’s Republic of China.
Will the chemical industry usher in a new round of rectification, and how will related products be affected?
After the Jiangsu Xiangshui accident at the beginning of this year, the chemical industry ushered in all-round rectification. In addition, the chemical market has experienced price increases, chemical stocks have reached their daily limit, and thousands of chemical companies have shut down. The entire chemical industry has been undergoing constant changes. A similar accident occurred again in Jiangsu and Zhejiang yesterday. Will it lead to a new round of production restrictions and suspension measures in 2020?
Yu Pengsen, an analyst at Zhaojin Futures, told reporters that there are still certain differences in the overall environment between Zhejiang and Jiangsu. First, Xiangshui is located in northern Jiangsu. Close to the north, there are historical problems caused by the blind development of the chemical industry in the past few years. The government has taken the opportunity to solve the problems that have long plagued the local people’s livelihood.needs and put it into practice. However, Zhejiang has conducted a thorough inventory of small chemical companies in the past few years, and there is no such basis. Second, the Xiangshui incident caused extremely serious casualties, and there are indeed major safety risks in the local area. The integration of the chemical market is inevitable. There were no casualties in the Hangzhou incident, and since the Spring Festival is approaching, some companies have already gone on holiday. The short-term production suspension for investigation has not been effective. Even if it is carried out on a large scale and it coincides with the off-season, the impact on the market will be limited.
Yide Futures analyst Xing Binbin also believes that the scale of the impact of this accident alone will not be so large. At present, the Qiantang New District Emergency Management Bureau, the Public Security Bureau, and the Fire Brigade have jointly carried out accident investigations, drawn inferences from one instance and carried out hidden danger inspections for relevant enterprises within the new district. However, judging from the strictness of environmental protection and production restriction policies in recent years, there is a high probability that there will be a new round of inspections and production restrictions in 2020.
Ye Lewei, an analyst at Guotai Junan Futures, said that safety of chemical companies comes first. If an explosion occurs and the impact is large, it may cause companies in regional industrial clusters to suspend production for safety inspections. . There were no casualties in this explosion. It is expected to have a certain impact on the dye industry, but there will be no centralized parking situation and it will be difficult to affect other chemicals.
As for the impact on chemical varieties, Xing Binbin said that the company will most likely suspend production for rectification due to the incident. This incident will increase the cost of the printing and dyeing industry and will also affect the chemical raw materials related to disperse dyes. Produce negative effects, such as phthalic anhydride. Looking purely at methanol varieties, due to the Spring Festival in early 2020, the market has a negative impact of a significant decline in the traditional downstream operations, the commissioning of new equipment before the holiday, and large arrivals at the port; at the same time, the market also has strong expectations for the macroeconomics in the first quarter and It is expected that the spring inspection will show that the market conditions before the holiday are likely to oscillate within a narrow range after the two are combined, with a slightly weaker trend. After the Spring Festival, it involves the uncertainty caused by the subsequent import volume. At present, if the import volume can still maintain a level of 1 million tons/month and above, then there is a high probability that the operation trend will still be weak after the Spring Festival. However, due to the macroeconomic bias, According to expectations and upstream spring inspection expectations, the market price will not decline too much; the average monthly import level of 900,000 to 1 million tons/month will most likely bring about narrow range oscillations in market prices, and the import level of 900,000 tons/month and below will There is a high probability that prices will oscillate and strengthen in the first quarter.
Yu Pengsen said that the company involved in the accident had the same nature as the company involved in the Xiangshui incident and produced similar products. Dyestuff companies have serious safety hazards in this regard. Stopping production for inspection is only a means, not an end. Only when an enterprise truly produces safely can such accidents be prevented from happening again. Jiangsu and Zhejiang are important printing, dyeing and textile bases in my country. This accident is bound to have a serious subsequent impact on my country’s printing and dyeing industry. The price of its downstream raw materials will rise, while its upstream products will face more severe tests. Now that the industry itself is in the off-season, the short-term impact may not be obvious, but the impact will gradually become apparent after the Spring Festival. “After experiencing the downturn from the end of 2018 to the whole of 2019, the chemical industry has basically bottomed out, and there is limited room for continued sharp decline. Currently, most products are on the verge of losing money or entering the red. After experiencing this round of loss reshuffle, some companies It has exited. Entering the first quarter of 2020, the market will improve, but the upside space is limited.” Yu Pengsen said.
Ye Lewei said that for futures, the dye industry is a downstream product of the PTA industry, so this explosion mainly affects the PTA industry. Specifically, as downstream production decreases, the downstream demand for PTA decreases. However, as the Spring Festival is approaching during this period, the downstream PTA has also entered the holiday period, and its own load will continue to decrease, with limited impact on demand. </p
