A major safety accident occurred at Inner Mongolia Baotou Iron and Steel Co., LTD., resulting in 6 deaths and 84 injuries

At 15:03 on January 18th, a saturated water and steam spherical tank with a capacity of 650 cubic meters exploded in the steelmaking operation department of the rare earth steel plate plant of Baotou Iron and Steel Co., Ltd. in Baotou City, Inner Mongolia. As of 22:00 on January 19th, the accident has caused 6 deaths, 4 people missing, and another 84 people injured and receiving treatment in the hospital. The rescue and investigation work at the scene is still ongoing.

After the accident, emergency fire-fighting forces arrived at the scene promptly. According to the footage taken by the fire and rescue personnel, the explosion affected a wide area. Many buildings within the factory area were severely damaged, and equipment and facilities were scattered. The on-site environment was complex, posing a significant challenge to the rescue operation.

Baotou Iron & Steel Co., Ltd. is the largest listed steel enterprise in the western region of China. It has a complete industrial chain from mining, mineral processing to ironmaking, steelmaking and steel rolling. Its main products include cold and hot rolled coil plates, galvanized plates, medium and heavy plates, seamless steel pipes, heavy rails and various types of construction steel, etc. The rare earth steel plate factory where the accident occurred mainly produces high-end rare earth steel products.

Although the direct impact of this accident on the supply and demand structure of the national steel market is limited, it has already drawn high attention to work safety both within and outside the industry. Analysis indicates that in the short term, the incident may cause certain fluctuations in market sentiment, but there is no significant imbalance in the supply and demand of steel at present. The production capacity of the involved factory accounts for a relatively small proportion of the national total output, and it is expected that it will not change the overall market fundamentals.

In the long term, this accident may prompt further tightening of industry regulation. Relevant departments may intensify the inspection of work safety and environmental protection, and the compliance costs for enterprises may rise. Meanwhile, the accident may also accelerate the exit of backward production capacity and the process of market integration in the steel industry, which is conducive to the improvement of industry concentration and will provide certain support for steel prices in the medium and long term.

At present, the investigation into the cause of the accident and the subsequent handling work are underway.