NITC's burning suezmax Sanchi is still at risk of an explosion or sinking, according to Chinese authorities.
AFP also cited China's transportation ministry as saying there was still no sign of survivors 36 hours after the 164,000-dwt Sanchi (built 2008) was damaged and caught fire in a collision with CoscoCS' 76,000-dwt bulker CF Crystal (built 2011) off Shanghai.
The vessel has been leaking its condensate cargo into the sea.
Rescuers attempting to reach the crew of 30 Iranians and two Bangladeshis were being beaten back by toxic clouds, the ministry said.
At least 10 government vessels and "many fishing ships" were helping with the ongoing rescue and clean-up, with a South Korea coast guard ship also at the scene.
First body found
But Iran's ISNA news agency later said the body of a crewman had been found on the vessel.
Mohammad Rastad, head of Iran's ports and maritime organisation, was quoted as saying the body has been taken to Shanghai to be identified.
Senior officials at NITC confirmed to TradeWinds on Monday that search and rescue efforts were ongoing and the accident is under investigation.
Condensate may have burnt off
The ship was carrying condensate, an ultra-light version of crude oil that converts from a gas to a liquid during extraction.
It is in liquid form only under specific conditions. Korean coast guard officials were reported by The Guardian as saying much of the condensate may have evaporated or burned off.
But any leak will be harder to deal with as it mixes more easily with water.
The charterer, South Korea’s Hanwha Total Petrochemical, told Bloomberg it plans to use its stockpiles as a replacement for the supply.
But it is also considering whether to make additional purchases.
It issued a tender on Monday seeking naphtha for delivery next month, and bought five 25,000-tonne cargoes.
The feedstock is also involved in petrochemical production.
It ended up paying a premium of about $10 a tonne over benchmark prices for four of the shipments.
While Hanwha said it has enough supply in its stockpiles to compensate for the lost cargo, traders see its demand for naphtha increasing after the collision.
It plans to claim compensation for the cargo’s loss under its own insurance.
DNV GL, which classes the Sanchi, said it had immediately mobilised its Emergency Response Service (ERS).
DNV GL's ERS will use its data on the ship to verify the strength and integrity of the hull following the collision to determine whether it is likely to sink.
The Hamburg-based unit was unable to comment on the current condition of the hull.
It is understood Shanghai Salvage has appointed under a Lloyd's Open Form (LOF) contract by P&I Club Steamship Mutual to carry out the emergency response to the accident.
The salvage firm has equipment onsite and was the closest to the disaster.
TradeWinds is told that at present salvors are unable to get "within 100 yards of the vessel."
Steamship Mutual confirms so far one body has been recovered.
