Singapore Lianhe Zaobao reported today: "Affected by export control regulations, more than six ethane carriers originally scheduled to sail to China are currently stranded along the US Gulf Coast. US authorities require US exporters to obtain an export license before shipping ethane to China."
The US is attempting to retaliate against China's rare earth controls by regulating ethane exports, pressuring China to make concessions on rare earth issues. China has a large demand for ethane and is highly dependent on imports (81% of imports in 2024, 98% from the US), with a consumption volume of 6.8 million tons in 2024.
Although China is the largest buyer of US ethane, it has countermeasures. On one hand, China can accelerate negotiations for ethane procurement from the Middle East (such as Qatar and Algeria) to diversify supply channels; on the other hand, domestic breakthroughs in shale gas ethane recovery technology are being actively promoted to reduce reliance on US ethane. Moreover, China's ethane is not the only raw material for ethylene production; stable supply systems have been established through routes such as naphtha, coal-based olefins, and PDH, making ethane not indispensable in this context.
Half of US ethane exports are shipped to China, and the aforementioned situation of ships being stranded will cause concerns about overproduction domestically, thereby lowering ethane prices and reducing manufacturers' profits.
Source: https://www.toutiao.com/article/1834278183977988/
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