(Bloomberg) — Shipments of oil and iron ore were disrupted at the northern Chinese port of Tianjin after a blast killed at least 44 people and injured hundreds.
Oil tankers and vessels carrying “hazardous products” are barred from calling at the port after multiple explosions rocked the city on Wednesday, according to a post from the official microblog of the Tianjin Maritime Safety Administration at 11:22 a.m. local time Thursday. BHP Billiton Ltd. and Rio Tinto Group said iron ore shipments were disrupted, while another vessel was prevented from loading steel.
Tianjin is the 10th-busiest container port globally and has become a northern gateway for shipments of ore, coal, automobiles and oil into China, the world’s biggest user of energy, metals and grains. About 17 percent of the nation’s ethylene imports, 15 percent of its wheat deliveries and 30 percent of steel exports in the first half of 2015 were transported via the Tianjin customs area, government data show.
“The blast will have some direct impact to port operators and commodities importers and exporters in the near term,” said Helen Lau, an analyst at Argonaut Securities (Asia) Ltd. in Hong Kong. “It will have little impact to commodities prices and imports as other ports across China’s eastern coastline, especially those ports in nearby Shandong and Hebei provinces, could easily digest the capacity Tianjin may not be able to handle.”
BHP Billiton, the world’s biggest miner, is working with customers to minimize the potential impact from the disruptions to its iron ore shipments, the company said in an e-mailed statement. There was no damage to its discharging berths at the port, it said.
Rio Tinto said its five vessels anchored in the harbor were unaffected by the blast. The company said five fully-laden bulk carriers are being re-routed, without specifying where to or what would happen to future shipments.
The late-night blasts Wednesday, which may have been the result of a fire, spewed toxic material into the air and shattered windows in buildings for kilometers around. China’s earthquake center said the biggest explosion was equivalent to a 2.9-magnitude temblor.
