China is set to import a record 800,000 tons of US ethane in April, up about 60%
from average levels, according to consultant JLC, as Middle East disruptions
from the Iran war and Strait of Hormuz constraints disrupt naphtha and LPG
supplies. Ethane, used to produce ethylene for plastics, has become a key
substitute feedstock due to stable supply and lower costs, with JLC noting
ethylene margins from ethane are about ten times higher than naphtha as of April
15. Demand is also supported by new capacity from Wanhua Chemical Group and
Sinopec Ineos (Tianjin) Petrochemical Co.. The International Energy Agency said
petrochemical feedstocks have been most immediately affected by the conflict,
while China’s imports also rise ahead of US-China talks expected around
President Trump’s May visit to Beijing.
