Chinese PVC plants reduce rate as the latest explosion raises safety question

Chinese authorities ordered three major carbide-based PVC plants to reduce operating rate by 20-30 percent for safety inspection purposes following an explosion happened earlier last week.

It is unclear on how long these companies need to run at lower rate, however market sources are speculating that it might take a month for the inspection to complete. “This would keep local supply tight in the near term,” maker source said while adding that the safety inspection might spread to other plants. 

On 26 November 2018, an explosion occurred at a loading area next toShenghua Chemical Co Ltd plant, which later was found due to a leakage from a VCM tank belongs to the company. The blast injured dozens of people and destroyed many trucks and cars, according to media reports.  The company operates a 200,000 tons/year carbide based PVC plant on the site and the unit has been shut since then with no defined restart date.