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Jiangsu’s chemical plants may be closed for safety checks, port congestion could worsen

29 March 2019

Following the fatal blast in Yancheng last week, the Chinese government is looking to strengthen the enforcement of existing safety regulations. The Jiangsu government has ordered immediate inspections of all chemical plants in the province, according to ICIS. Two caustic soda solution (CSS) units have been closed since last Friday for a one-week check. Subsequently, more downstream units in Shandong and Jiangsu might be shut down, reported ICIS. This may weigh on Chinese demand of feedstock chemicals amid the summer lull period.

In addition, vessels calling Yangtze river ports may experience stricter transit cargo and night navigation restrictions, according to Eastport brokers. This may point to increasing wait time at anchorages and worsening congestion.

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