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I've been using an Omtech Polar laser along with a CNC router to make truss rod covers from various materials. A few weeks ago, I decided to try and see if celluloid (pearloid) was something that could be laser cut / engraved. My thinking was that I cut many other flammable materials (wood, felt, cork, acrylic, etc.) and the air assist keeps them from burning outside of the laser spot area (I think).
I was able to do some raster engraving with success (see attached Special Forces Truss Rod Covers - the right one is pearloid).
Today, I tried again with a standard Gibson bell design and it made quite a conflagration in the laser. Luckily, I watch pretty closely when I'm laser cutting anything questionable. This is from the same piece of pearloid with the same laser settings but for whatever reason, this time it burned pretty vigorously.
Celluloid does burn vigorously! In the vintage fountain pen community, celluloid pens tend to warp over time. Straightening them requires careful heating over an alcohol flame. Too much heat and instead of a valuable vintage pen, you get a pile of cinders...
Youtube has a number of videos of celluloid burn tests (the 100 ping-pong ball burn is pretty cool). It isn't an explosion...but it does produce toxic fumes. Finely divided celluloid (dust) in the air can go up like a bomb...but then so can flour or wood-dust.