Export bans hit fireworks industry

A recent reduction in the number of ports in China allowed to export the country's fireworks has forced the ancient industry to the point of bankrupcy.

In February, a blast at a fireworks warehouse led to a ban on fireworks shipments at the southern port of Sanshui, Guangdong province, which previously handled 20 percent of China's pyrotechnic exports.

Then, in late March, officials stopped fireworks shipments at Nanshan, another Guangdong port, after inspectors found explosives that had been declared as something else.

Guangdong may not allow fireworks shipments to resume, because the province is trying to shift its economy to more sophisticated goods.

Adding to the industry's woes, China has ordered major ports such as Shanghai and Hong Kong to suspend shipments of explosives as part of tightened security ahead of August's Beijing Olympics.

"It's been extremely difficult," Chen said. "There is simply no way out even if we're willing to pay 10,000 yuan RMB (more than US$1,400) extra for each container."

In China, 30 to 40 percent of fireworks for overseas customers have not shipped, forcing many of the country's 7,000 factories to curtail or even stop taking overseas orders, said Liu Donghui, the secretary-general of China-based International Fireworks Association.

On the U.S. end, 10 percent to 15 percent of orders didn't show up, said Heckman. Ninety-eight percent of American fireworks imports come from China. 

China ordinarily sends 9,000 shipping containers of fireworks a year to the U.S., she said, and the shortfall "is by far the most difficult challenge the U.S. firework industry has had to face."

Matt Sutcliffe of Premier Pyrotechnics, Inc. in Richland, Mo., realized six weeks ago that he would run short and have to cancel some shows. He said he contacted every company he knew to pick up the slack, but "No company that I talked to said they could take additional shows."

Heckman said this year's shortage would probably go largely unnoticed by Independence Day spectators because retailers and pyrotechnicians will be sharing their stockpiles.

"As competitive as this industry is, we bleed red, white and blue, and we'll do anything to try to make certain each community gets their Fourth of July Independence Day show," she said.

Liuyang's factories alone produced US$1 billion worth of fireworks last year, some US$430 million of it to meet overseas orders, the association's Liu said.