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According to CCTV News, an explosion and fire occurred at a chemical plant of German chemical company BASF on July 29 local time, causing 14 employees to suffer minor injuries.

According to German media reports, an explosion occurred at BASF's factory in Ludwigshafen, southwestern Germany, at around 12 noon that day. Nearby residents heard a loud bang and the scene was filled with smoke. The local fire department notified residents to close doors and windows.

At present, the fire has been put out and the danger warning to residents has been lifted. The cause of the accident is under investigation.

It is impossible to estimate when production will resume

It is reported that BASF is one of the world's largest chemical companies, with 234 production bases worldwide and operations in 93 countries. It has 112,000 employees and sales of 68.9 billion euros in 2023. So far, it has invested more than 10 billion euros in China (and invested about 14 billion euros with partners).

"We are currently unable to assess and judge the impact of this accident and when production will resume. According to the Securities Times," BASF (China) Company told reporters on the evening of August 1, "Currently, the device where the accident occurred is in a safe shutdown state, and the cause of the accident is still under investigation. The German factory is also making every effort to promote the follow-up handling of the device accident."

"At present, it is certain that the device where the accident occurred was used to produce VA (vitamin A) and VE (vitamin E) raw materials, rather than the ethylene, propylene and other production devices previously circulated on the Internet. When the accident device will resume production depends on the results of the investigation to determine whether the device is safe and reliable. Therefore, the German factory is currently focusing on this matter." BASF China told reporters, "It is expected that there will be further news next week."

Domestic manufacturers collectively stop quoting

"Currently, judging from the information received by BASF's customers, the explosion has directly affected delivery." According to the Securities Times, on August 1, a domestic vitamin manufacturer told reporters, "Based on this, it is estimated that the explosion has affected BASF's subsequent vitamin production and supply."

On the same day, another domestic vitamin company told reporters, "We have no new news at the moment. The only thing we can see is an email from BASF to its customers circulating in the market, saying that VA and VE are affected."

The news received by BASF customers mentioned above is that on July 31 (Wednesday), BASF sent an email to its customers showing that BASF has suspended the delivery of VA and VE products from its Ludwigshafen plant in Germany.

"At present, mainstream domestic manufacturers have stopped quoting and signing orders, and are waiting to see the impact of the BASF accident." On August 1, a domestic vitamin manufacturer told reporters.

Another domestic vitamin manufacturer also said, "We were still quoting prices as usual yesterday, but today (August 1), our company has stopped quoting prices and will not sign orders, even if they come to us. Like other manufacturers, we are closely watching the final impact of the BASF explosion story."

According to Baichuan Yingfu data, the price of VA was 98 yuan/kg on July 30, 125 yuan/kg on July 31, and 150 yuan/kg on August 1; the price of VE was 95.5 yuan/kg on July 30, 108 yuan/kg on July 31, and 115 yuan/kg on August 1. In other words, after the accident at BASF's German factory, the price of VA increased by 53% in two days; the price of VE increased by 20%.

Baichuan Yingfu analysis shows that the mainstream manufacturers of vitamin A have stopped signing and reporting in China, and the dealers are reluctant to sell. The price has risen sharply. The current market reference transaction price has risen to 120 yuan/kg to 130 yuan/kg, and some quotations have been raised to 140 yuan/kg to 150 yuan/kg, but the transaction of new high-priced orders has yet to be confirmed. In the short term, the market order center of gravity is expected to continue to rise.

A-share companies responded

In terms of A-shares, vitamin concept stocks were the top gainers at the close of August 1. Hehua shares rose for three consecutive days, Zhejiang Medicine and Fujilai rose by more than 5%, and Jiabiyu, Xinhecheng, Jindawei and others followed suit.

The reporter of Southern Finance Express, posing as a personal investor, called Hehua Group and Zhejiang Pharmaceutical to inquire about the rising stock prices and the surge in vitamin prices.

A person related to Hehua Co., Ltd. said, "The company does not directly produce vitamins, but has the ability to produce vitamin D3 intermediates, but currently has no relevant production plans."

The operator of Zhejiang Medicine pointed out that "the market price of vitamin D3 has risen sharply, but the company's production in this area is relatively small, so it has little impact on the company. The company's leading product is vitamin E."

The operator also revealed, "The company is also concerned about the explosion at the BASF chemical plant, but the plant is very large and the explosion site is in the south. As far as we know, the production line there may not involve the vitamin production line."

Source: Securities Times, Nancai News, CCTV News, public information

SFC

Editor of this issue: Li Yutong

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