Xiangshui Explosion Supply Side Tightening Dye Prices Rising

The explosion of Xiangshui Industrial Park in Yancheng, Jiangsu, triggered a chain reaction in capital market.

In March 25th, a number of listed companies announced that after being injured in the accident zone's subsidiary, they were informed from several dye plate companies. Since the explosion, a number of related chemical products have been raised, and the dye leader Zhejiang Longsheng has stopped the quotation of benzene two amine and resorcinol.

Many chemical industry analysts believe that in the long term, the explosion will have an impact on the entire chemical industry, and the relevant safety inspection will be strengthened, and the supply side will be tightened to a certain extent.

Subdivision will directly affect the supply of pesticides and dyestuffs, leading to the rise in prices of related chemicals.

Spread to many listed companies

The explosion occurred in a chemical industrial park in rounded Shui county.

Since March 21st, many listed companies have voicing this accident.

The two subsidiaries of Lianhua science and technology are located in the park. After preliminary statistics, 2 employees died, and the rest of the staff were injured by the blast wave. Some of the houses and equipment of the two subsidiaries were damaged and temporarily shut down.

The announcement shows that they are important subsidiaries of Lianhua science and technology. The total operating income in 2017 was 1 billion 812 million yuan, and the total net profit was 116 million yuan, accounting for 44.12% and 57.85% of the company's consolidated statements.

In the latest 1 quarter earnings forecast, Lianhua technology mentioned that the two subsidiaries were affected by the accident of other enterprises in the park, and some products were delayed delivery. The estimated impact on the company's reporting period is about 100 million yuan.

In March 22nd, the combination of science and technology fell down, and the 25 daily in March was 10.58 yuan, and it fell 6.87%.

The situation in Jiangsu is similar to that in Jiangsu. In March 25th, shares in Wuhan and China fell by 7.82%.

Jiangsu Wuzhong said that due to the explosion of enterprises in the park, some of its houses and windows and doors were damaged by its wholly owned subsidiary, Xiangshui Hengli Da Chemical Technology Co., Ltd., and some employees were injured and temporarily shut down.

According to the results of the financial report, Xiangshui Hengli reached 650 million yuan in 2017, accounting for 21.98% of the operating revenue of the same period of the listed company, and the net profit was 83 million 810 thousand yuan, accounting for 62.97% of the net profit of the same period of the listed company.

Jiangsu Wuzhong relevant staff said: "in 2017, because the company has just bought the Hengli DA and counted it into the report, it accounts for a relatively large proportion. In 2018, most of the time in Hengli reached a shutdown due to environmental supervision, and it was expected that the proportion would not be large.

In the future, the impact on listed companies can not be determined, and the relevant departments have not yet made clear plans for disposal.

Anoits's wholly owned subsidiary is also located in the park. In March 25th, the relevant staff said that it was 2.2 kilometers away from the accident business and damaged only the office building glass, causing no casualties and equipment damage.

But for safety reasons, the production has been temporarily suspended.

The explosion is not only affecting the listed companies in the park.

Jiangnan high fiber said, Tian Jiayi chemical real controller Ni Chengliang control of Ni Jiaxiang fine wool spinning, and Jiangnan high fiber business contacts.

As of the announcement date, Ni Jiaxiang fine woollen textile company owed 3 million 121 thousand and 900 yuan.

At present, the company has not received the information about the payment obligation of the fine wool spinning in Ni Jiaxiang.

However, the company's stock price fell for 2 consecutive trading days.

Rising price of dyes

At present, these companies are not clear about the future handling of the accident.

However, the impact of accidents on related industries has gradually emerged.

Jiangsu chemical industries and main products such as benzene, two amine and other chemical raw materials and products, and the production of more dyes and intermediates, pesticides and intermediates, industrial fungicides, intermediates and other products, the explosion will directly lead to the shortage of benzene amine two.

In March 25th, we learned from Zhejiang Longsheng that the company has stopped offering quotations from benzene two amine and resorcinol, as well as price increases for dye related products as the overall situation has not yet been clearly judged.

An enterprise in the park said: "now the entire park is uncertain, resulting in tight supply and costs will rise, so there is a price hike.

At present, the price increases are mainly disperse dyes.

In March 25th, a chemical industry analyst said: "last year there was a wave of chemical price increase, mainly because environmental supervision is the logic of supply and demand balance.

This year, the main reason is that after the accident, the production capacity of dye intermediate products is limited, and the price of raw materials increases.

Generally speaking, I am more optimistic this year.

Another chemical industry brokers further analyzed that the current supply side oligopoly pattern of dye industry is obvious. The capacity is mainly concentrated in Zhejiang Longsheng, Ru Tu shares and Jihua Group three leading enterprises, accounting for more than 70% of the effective market share, and a strong bargaining power for downstream printing and dyeing enterprises, to a certain extent, pushing up the price of dyes.

At the same time, due to the Limited rehabilitation of dye enterprises in Northern Jiangsu and Shandong, the price of dyes has been rising.

Demand side, printing and dyeing enterprises are entering the peak season of production.

The explosion will directly lead to the delayed progress of the resumption of dye and intermediate enterprises in Northern Jiangsu, and the price of disperse dyes and reactive dyes will be further increased.

However, the brokers believe that the price of other chemicals may not be the same as that of last year, except for dye related products.

"A lot of product prices can't go up. Last year, the problem of environmental protection was stacked up to replenishment demand, but this year there is a lack of support for downstream demand, and the security check is hard to ascertain."