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Impact of Shanghai Petrochemical fire on polyester chain

2022-07-04 07:55:35 CCFGroup

A fire broke out at 4:28 a.m. June 18, at the ethylene glycol plant of the chemical department of Sinopec Shanghai Petrochemical Co., Ltd., located in the city's Jinshan District.

The Shanghai Municipal Bureau of Ecology and Environment said the latest monitoring data show that the air quality has almost returned to normal, and no water pollution has been found in the surrounding rivers.

Due to the accident, the company has shut down the whole plant, including paraxylene and mono ethylene glycol plant. We will keep following up the restart.

The impact of the fire on polyester industrial chain:
PX (1,000 kt/yr)	Plant operation	700kta shut amid the fire (among the total 1 mln/yr, 300kta has been closed for a long period.)
PX (1,000 kt/yr)	Impact	PX plant O/R down 2% to 81.8% due to the accident. The PX unit remains normal, but is shut together with the whole refinery. The restart is undecided. Eyes could rest on whether this accident would lead to more safety checks, further affecting the operations of other plants.
PTA (400kt/yr)	Plant operation	Shut on December 2021.
PTA (400kt/yr)	Impact	No impact
MEG (225+300kt/yr)	Plant operation	Has stopped cargo loadings since June 17, and the two units were shut down. #1 producing EO; #2 around 30% previously
MEG (225+300kt/yr)	Impact	MEG O/R down 0.44% to 56.52% due to the accident. Monthly output loss around 10kt. The shutdown of EO unit will tighten EO supply. Eyes could rest on whether other producers in East China would switch to more EO output. The shutdown could boost market sentiment in short, but high level of port inventory will keep weighing on market sentiment.
Polyester (150kt/yr)	Plant operation	PET fiber chip unit was shut down
Polyester (150kt/yr)	Impact	Polyester polymerization rate down by 0.2%; eyes on the restart progress

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