UpdateMain developments in the China earthquake

14 May 2008 17:30  [Source: ICIS news]

LONDON (ICIS news)--The following is a summary of the current situation following Monday's earthquake in Sichuan province, southwest China. 

 

The earthquake

A magnitude 7.9 earthquake hit China’s southwestern province of Sichuan at 14:28 local time (06:28 GMT) on Monday 12 May. This was followed by several aftershocks, the most serious measuring a magnitude of 6.1 at 07.10GMT on Tuesday.

 

The population

Almost 15,000 people have been killed in the earthquake with another 25,788 still buried and a further 14,051 missing, according to reports by state news agency Xinhua.

 

Region

The area nearest the epicentre of the quake was reported to have been reached by Chinese soldiers and police who have made their way to the region by truck, helicopter, parachute or on foot.

 

Railways and roads linking Sichuan to northwest provinces such as Shaanxi, Gansu, Ningxia and Xinjiang, and southwest to Yunnan and Guizhou have collapsed, causing major transport problems.

 

Rail transportation from Shanghai to Sichuan province has also been affected as the rail link passes through Xian in neigbouring Shaanxi province.

 

About a dozen ships are also being used.

 

Stock market

The Shanghai Stock Exchange (SSE) has lifted the suspension in share trading of 32 of 45 companies affected by the earthquake while China chemicals stocks were up on average. 

 

Chemicals – Companies

Two fertilizer plants - operated by synthetic ammonia producers Ying Feng Co and Chuan Xin Yun Fang - collapsed on Monday, trapping workers and leaking 80 tonnes of ammonia.

 

PetroChina's operations in the area, including its chemical production plants, have all been disrupted.

 

Titanium dioxide (TiO2) producer Sichuan Lomon has shut down  its 80,000 tonne/year TiO2 plant in Mianzhu as a precautionary measure, while more than 3,000 aftershocks have forced crude benzene producers to cut production over safety concerns.

 

Most of the plastics processors in Sichuan were located in Mianyang and Deyang county where buildings and roads were also damaged by the quake, although to a less extent than Wenchuan and Dujiangyan county.

 

The earthquake forced PVC makers in Sichuan, with a total production capacity of around 1m tonnes a year, to shut down plants as a safety precaution although no damage was reported

 

The 450,000 tonne/year Chongqing Kingboard had shut on 12 May but restarted normal operations on 13 May. The other 300,000 tonne/year Chuanwei methanol facility had also restarted operations although at low rates.

 

Phosphate factories, including those of Sichuan Hongda, Ying Feng and Longmon, with a combined capacity of nearly 1m tonnes/year of phosphate fertilizers had been severely damaged.

 

Chemicals – Prices

Eastern China-based acetic acid producers raised ex-tank prices by yuan (CNY) 50/tonne on Tuesday, and by another CNY100/tonne on Wednesday to CNY5,550-5,650/tonne as buyers emerged to stock up on supply concerns ahead of an impending heavy plant turnaround season.

 

China’s eight methyl ethyl ketone (MEK) makers to raised domestic prices by CNY 300/tonne to CNY11,900/tonne ex-tank in eastern China and by the same amount to CNY12,300/tonne ex-tank in southern China.

 

Methanol prices in the coastal regions of Shanghai and Guangdong continued to rally upwards this week amid healthy downstream demand from gasoline blending and dimethyl ether (DME) sector and higher feedstock coal prices.

 

The European melamine market is likely to be significantly affected by the shutdown of plants in the Sichuan region.

 

Aid

PetroChina and Sinopec have each provided CNY 10m ($1.4m) in disaster relief. The former will also supply 100,000 tonnes of refined oil to the region, while the latter said it has offered personnel and special groups to provide support. Taiwan's Formosa Group donated CNY100m and Dow Chemical has contributed CNY2m.

 

($1 = CNY6.99)

By: Lucy Craymer
+44 20 8652 3214

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