The hottest Formosa Plastics fire caused the spot

The Formosa Plastics fire caused the spot price of ethylene to rebound in response.

the olefin plant 1 (OL1) in the Mailiao No. 6 light industrial zone of Formosa Plastics Petrochemical unexpectedly shut down on the 7th of yesterday, and the originally depressed spot price of ethylene rebounded in response. The industry estimates that the No.1 light olefin plant will be shut down for at least one month, and the direct operating loss of TPC will be as high as 3.8 billion yuan (New Taiwan dollars, the same below), which will affect all downstream derivatives production lines on both sides of the Taiwan Plastics Group

it is reported that the No. 1 light olefin plant under Formosa Plastics Petrochemical Co., Ltd. yesterday caused a fire and dense black smoke due to the suspected rupture of the shaft seal at the bottom of the distillation tower in the normal temperature fractionation area of the plant, and the leakage of propylene fluid. Fortunately, the fire was quickly controlled and no casualties were caused

it is reported that the annual ethylene production capacity of No.1 light olefin plant is 700000 metric tons, which is supplied to many downstream plants of Formosa Plastics, Nanya and Taihua of the same group. After the accidental shutdown of the fire, TPCC also has an olefin plant 2 with an annual ethylene production capacity of 1million tons and an olefin plant 3 with an annual ethylene production capacity of 1.2 million tons

the head of Taiwan plasticization pointed out that after the shutdown of the first olefin plant, there are three enterprise standards including ethylene, propylene, butadiene and other petrochemical basic raw materials. In August 2013, the three enterprise standards passed the review of experts of the standard review committee in room 402 of Jinan Bureau of quality and technical supervision, and the second production line with an annual output of 350000 metric tons of ethylene glycol in South Asia is also being shut down for overhaul, and the excess ethylene can be dispatched to other production plants

the news of the fire shutdown of Formosa plastic olefin plant yesterday had to be spread at noon. The spot price of ethylene in Asia, which originally fell to $898 per ton, immediately rebounded to more than $900. As the second light olefin plant will be shut down for annual maintenance in August, the market expects that ethylene prices will have the opportunity to "burn" a rebound

Petrochemical experts said that the damaged parts and components of Formosa Petrochemical have spare parts. As long as they are replaced immediately, they can return to work within a few days. But the problem is that a fire broke out and burned for several hours, which may even damage important equipment such as compressors, which must be renewed only after ordering from the original factory. Moreover, it was reported from the market that Formosa Petrochemical still needed to cooperate with the "labor inspection unit" to investigate, so that the light crack plant might be shut down for one month. Then in the evening, it was determined that the situation was serious, and the shutdown time might be as long as three months

the Taiwanese industry said that this fire accidentally disrupted the supply chain scheduling of Formosa Petrochemical. Formosa Plastics Group has previously decided to carry out the annual repair of the second olefin plant in advance in the next five years. If the plan is to keep the same type of products, there will be two light cracking plants accounting for 60% of the total ethylene production capacity at the same time

it is understood that Formosa Petrochemical has urgently informed butadiene extraction plants such as Chimei and Taiwan rubber that the contractual supply volume will be reduced by more than 50% in July and August, which is expected to stop the falling price of butadiene at the bottom first, thereby driving downstream products such as acrylonitrile butadiene styrene copolymer (ABS) to stabilize

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