BUSINESS

Gas Leak at BASF’s Shanghai Facility Raises Chemical Supply Concerns

Published: Sep. 25, 2026 12:10 a.m. GMT+8

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Exterior of a BASF chemical facility in Shanghai’s Pudong district, May 7, 2026. Photo: VCG

A toxic gas leak at a major Shanghai chemical plant operated by German chemicals giant BASF SE prompted a temporary production halt, heightening concerns over supplies of key plastics feedstocks.

The incident occurred on Wednesday morning at Shanghai BASF Polyurethane Co. Ltd. (SBPC), when equipment failed at a wastewater-treatment facility, causing a release of nitrogen oxides, Caixin confirmed through multiple sources on Thursday.

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Gas leak at BASF's Shanghai polyurethane plant Wednesday caused temporary halt, releasing nitrogen oxides; contained in two hours.
Plant produces TDI and MDI, with 220k tons TDI and ~300k tons MDI annual capacity, about 10% and 4% of China's capacity.
East China TDI spot rose to 18,050 yuan/ton; polymeric MDI rose 1.4% to 17,800 yuan, amid supply concerns.

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Who’s Who

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What Happened When

2006：: The Shanghai BASF Polyurethane Co. Ltd. plant began operating, producing TDI and MDI.

2025：: SBPC launched a 450-million-yuan expansion project; first phase began in May 2025 and completed in June 2025.

September 23, 2026：: Toxic gas leak occurred at the Shanghai BASF Polyurethane Co. Ltd. (SBPC) plant in the morning; production halted and TDI spot price rose by 2.35% to 17,450 yuan per ton; polymeric MDI price rose by 1.4% to 17,800 yuan per ton.

September 24, 2026：: Caixin confirmed the incident through multiple sources; TDI spot price rose by another 3.44% to 18,050 yuan per ton; trading company reported elevated prices in East China; leak was contained within two hours with minimal impact on employees and environment.