Related Vendors
However, the Tianjin incident raises questions of safety standards and regulations. China has well-established safety standards and regulations in place. These standards and regulations are comparable to those used in the Western world. However, the key issue is how these standards and regulations are followed in practice. Under increasing cost pressure, core safety standards can be compromised in some cases. This not only happens in the chemical industry, but also in other sectors, such as mining and construction.
Bulk Chemicals not Affected by Explosion
Since the Tianjin explosion happened in a container warehouse area, there were no bulk chemicals or plastics involved in the explosion or damaged (or at least too little to impact supply in a significant way).
Bulk chemical tank farms are located far away from the warehouse where the explosion occurred, and therefore, there is not a direct impact reported to bulk chemical material handling operations. Chemicals production in the region was also not interrupted.
Suspended Shipping Cuts Supply Lines
However, the chemical port loading/unloading in Tianjin was suspended and any chemical land shipments (by truck or rail) in the Tianjin region were also suspended immediately after the incident. Therefore, there is an immediate interruption in chemical and plastic supply in North China. However, the interruption is most likely short-term and unlikely to last for more than one month. Tianjin is not a major commodity chemical port, and the impact to the entire China chemical supply chain should be minor.
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