Dragon Aromatics’ PX plant which is situated in Gulei, Zhangzhou in the Fujian Province of China, faced a huge explosion on 6th of April. The explosion caused a large fire break as reported by media. Reportedly, a pumping station in the plant experienced the explosion. The reason for the explosion is not know till now. This incidence may extend the maintenance period which is performed in the plant.
The production facility of Dragon PX at Zhangzhou, produces a 12% of China’s total production capacity. The plant has two units that produce PX and has a total capacity of 1.6 million tons per year. The plant was shut in the month for maintenance. The offline period for the plant was around 30 days but with this incident this period seems to be extended for several more days.
This reduced supply of PX in Asian market will surely affect the PTA and PET markets as well as plastic testing instruments manufacturers. The prices of products have already been raised and reached sky. After the explosion, the prices of PET sky rocketed from USD 66 to USD 1148. Now most of the buyers are not rushing to make the purchase but are adopting Wait and see policy.
News Source:- http://www.plasticsinfomart.com/explosion-in-chinese-px-plant-firms-up-pet-sentiment-in-asia/