The Urethane Blog

Kukdo Outage

Guodu Chemical Resin Plant exploded, and the resin will rise again?

Echemi 2020-11-04

Recently, an explosion accident occurred at the Guodu Chemical Resin Plant. Two people were injured in the accident. The fire caused by the explosion was brought under control within one hour. According to insiders, Guodu Resin has three sets of devices, all of which are isolated. The explosion accident this time was probably due to the dry weather and the explosion caused by dust. The specific cause is under further investigation by the relevant departments.

Public information shows that Guodu Chemical Co., Ltd. was jointly invested and established by Korea Guodu Chemical Co., Ltd. and Japan’s Solectron Chemical Co., Ltd. Korea Kukdo Chemical Co., Ltd. was established in 1972 and is one of the world’s leading manufacturers of epoxy resins and curing agents. At present, in addition to the four production bases in Korea, Guodu Chemical Co., Ltd. has also invested in the establishment of Guodu Chemical (Kunshan) Co., Ltd. in Kunshan City, Jiangsu Province, China, which mainly produces epoxy resin and polyether polyol products.

According to industry insiders, the dust explosion caused by bisphenol A is the main cause of accidents among epoxy resin manufacturers. At present, epoxy resin companies generally have two ways to avoid such accidents. One is to connect to the underground through pipelines to drain static electricity; The other is to use steam to reduce static electricity during the feeding process. In addition, the work clothes of the operating workers also have the effect of anti-static, and multiple measures can be taken to effectively prevent accidents.

A number of resin companies closed, and prices continued to rise

After the explosion, resin companies are bound to cause a battle without gunpowder and smoke. Recently, many resin companies have increased their prices.

Generally speaking, the reasons for price hikes are not only upstream price hikes and the surge in downstream demand, but also the reduction in market volume caused by the reduction in supply in the industry and corporate overhauls will also drive anxiety and increase downstream purchases.

Due to the high level of the domestic epoxy resin market, the negotiated price of solid epoxy resin is around 16,800 yuan/ton (delivered upon acceptance). In addition, more than a dozen resin companies, including Anhui Zhicheng Industrial, Shexian Hongda Chemical Industry, Qingtian Materials, New Sino-French Polymer Materials, Anhui Yongchang New Materials, Huangshan Zhengjie New Materials, and Jiangsu Ruipu Resin, have announced price increases recently. The notice kicked off the price increase in the domestic resin industry. Judging from the price increase notices issued by various companies, indoor polyester resin products rose by 300-600 yuan/ton, and outdoor polyester resin rose by 500-800 yuan/ton. Leading company Allnex Resins rose twice in a row, with a cumulative increase of 700 yuan/ton. Among them, a large factory increased the price every morning and afternoon due to too many orders, and the price was close to 23,000 yuan/ton (in barrels), putting a high price on the last working day of October.

In addition, the sudden safety accident at Guodu Resin Plant will inevitably cause tension and anxiety in local enterprises, and even more tension in the resin industry. In addition to bringing tension to the resin industry, it may also cause large-scale safety inspections in Kunshan and even the entire Jiangsu area. It will also cause certain problems to the normal production of local epoxy resin companies and other raw material and coating companies. influences.

Judging from the current market situation, since August this year, the price of chemical products has continued to increase. Even the polyester resin industry that has not seen price increases for many years has begun to be unable to restrain the increase, and even quotations have been invalidated and orders have been destroyed. This is really rare in the chemical industry. Based on this speculation, the prices of chemical products and raw materials will continue to rise in the last two months of the year, and the hot trend may continue until next year.