The Chinese government will likely tighten inspections on the country's carbide industry following an explosion at the chlor-alkali producer Hebei Shenghua Chemical Wednesday, industry sources said.
At least 22 people were killed and 22 others injured following an explosion at a chlor-alkali plant owned by Hebei Shenghua, in Zhangjiakou City, north China, local media reported Wednesday.
Market sources said the explosion occurred Wednesday morning just outside the plant when some trucks were waiting to discharge and load chemical products. The sources said the explosion was likely triggered by a chemical reaction between carbide and water.
Carbide is a key feedstock for coal-based PVC.
The sources said the government would likely tighten inspections on carbide following the accident, which would likely reduce carbide production in China.
"It [the inspection] would likely be a cost increase factor for carbide-based PVC," a market source said.
On November 21, the Chinese domestic carbide-based PVC price was assessed at a 7-month low of Yuan 6,500/mt, unchanged from a week earlier, S&P Global Platts data showed.
Early Wednesday, the carbide-based PVC price was reported to be hovering in a range of Yuan 6,400-Yuan 6,500/mt, according to market sources.
Platts publishes Asian PVC assessments every Wednesday.
