Dongxing explosion supports Chinese PVC prices

An explosion hit the Dongxing polyvinyl chloride (PVC) plant in Inner Mongolia today, sending domestic prices higher.

The explosion hit the Dongxing PVC plant in Ulanqab, Inner Mongolia, early today, killing three people and injuring five.

The incident will affect 320,000 t/yr of caustic soda, 300,000 t/yr of PVC and 600,000 t/yr of carbide production. The blast happened during maintenance at the plant.

PVC futures surged while domestic prices rose by around 100 yuan/t following the explosion. Ethylene-based PVC prices are at Yn7,100-7,200/t ex-works in east China, while carbide-based PVC increased to Yn6,900-6,950/t ex-works on the same basis.

The Inner Mongolia blast is the latest in a series of accidents at Chinese chemical plants that have prompted stricter safety checks. The most serious recent incident was the March explosion at a chemical plant in east China that killed at least 47 people.