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Industry News | Time: Apr 8 2019 9:54AM
An explosion rocked FCFC's chemical plant
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On April 7 afternoon, an explosion occurred at the LPG pipeline of Formosa Chemical and Fiber Corp's plant at Mailiao. Its three aromatics units were shut temporarily, and will be restarted in short term. The No. 1 aromatcis unit is scheduled to shut in mid-Apr for maintenance lasting 45 days; and its No. 3 aromactis unit with PX capacity of 930kt/yr has no maintenance schedule.

According to news released by Xinhua, more than 10,000 villagers had to be evacuated after an explosion rocked a chemical plant in an industrial zone in Mailiao township, Yunlin county in central-southern Taiwan Sunday afternoon.

The explosion at an aromatics plant of Formosa Chemical and Fiber Corp at about 2 p.m. shattered glass in nearby buildings and shook houses kilometers away, local police and fire fighters said.

The explosion did not damage aromatics units directly, but still the units were shut for safety reason. The accidental shutdown won't last long, but the restart date is undecided, therefore, market sentiment gets impacted.

Chinese mainland usually imports about 100kt of PX per month from Taiwan. The main destination of FCFC's PX exports are its own PTA plants in Chinese mainland. The producer also sell PX to Jiaxing PC, OPSC, Honggang, Helen, etc. Jiaxing PC's PTA plant is currently under maintenance, and the volume to other clients is quite small.

PX supply-demand fundamentals are mostly not affected by the explosion, unless the aromatics units are shut for longer periods. In Chinese market, PTA futures hike to the up limited on Monday, which is driven up by the news of explosion, as well as PTA plant maintenance coupled with rise in crude oil.
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