Tuesday, April 21, 2026
China To Import Record Amount Of US Ethane As Iran War Chokes Off Naphtha, LPG Supplies
One year ago, in the immediate aftermath of Trump's Liberation Day tariffs, there was a flurry of discussion over who is more reliant on whom: the US on Chinese rare earth materials, or China on US ethane output (see "Chinese Plastics Factories Face Mass Closure As US Ethane Supply Evaporates" and "Who Blinks First? China May Exempt Tariffs On US Ethane & Other Goods"). Following the detente in the US-China trade war, that discussion was quietly relegated to the back of the line, however the time has come to bring it up again.
That's because with the Iran war choking off traditional - and crucial - supplies, China is set to import a record volume of US ethane this month as petrochemical producers desperately seek alternative feedstocks for their operations.
Shipments of US ethane are expected to rise to an all-time high of 800,000 tons in April, according to Chinese consultant JLC, which would be around 60% higher than the monthly average. Some companies can switch to using ethane, helping them offset disruptions to the supply of naphtha and liquefied petroleum gas from the Middle East after the effective closure of the Strait of Hormuz.
Ethane is a natural gas liquid primarily used to produce ethylene, a key building block for plastics, and China depends almost entirely on the US for supply. The product became a political flashpoint between Beijing and Washington last year after the US tightened export controls during a bitter trade war.
Of course, this means that if Xi plays the rare earth cards in his upcoming summit with Trump, the US president can retaliate by simply shutting down China's plastics industry.
US ethane has become the preferred alternative for China’s ethylene makers due to stable supply and lower cost, said Shi Linlin, an analyst with JLC. Profits to produce ethylene from ethane was tenfold that of naphtha as of April 15, which has been inflated by crude-linked pricing, JLC said.
A ramp-up of downstream production capacity has also lead to a pickup in demand for the gas. A new ethane unit developed by Wanhua Chemical Group and a multi-feed cracker unit by Sinopec Ineos (Tianjin) Petrochemical Co., have both supported higher imports this year, Shi added.
The International Energy Agency said last week that “petrochemical feedstocks display the most immediate effects of the war by far,” and that supply chains to Asia have been thrown into “disarray.” Japan has been forced to scramble for naphtha, tapping a range of suppliers including from the US and Africa.
In February, just before the war started, more than 50% of China’s naphtha imports and over 40% of its LPG purchases originated from Persian Gulf nations, according to Chinese government data. That supply chain has now been cut off for as long as the Strait of Hormuz is blocked. And while China may have a massive 1.5 billion oil barrels in strategic petroleum storage, it has no naphta or ethane, meaning its plastic industry is suddenly very much exposed.
“The disruption around the Strait of Hormuz has really highlighted how exposed Asia is to Middle Eastern naphtha,” said Amber Liu, the head of Asia Petchem Analytics at ICIS. This year, naphtha-fed crackers have accounted for about 57% of China’s ethylene capacity, compared with 16% for ethane, she said.
China’s ethane buying spree comes ahead of President Donald Trump’s planned visit to Beijing in mid‑May, and US energy is expected to be part of the agenda. It could feature prominently if the Iran war continues to drag on.
China protests US report on Hong Kong
The Chinese Foreign Ministry said on Tuesday that it lodged an official protest with the United States after the US State Department issued a report on the situation in Hong Kong last week.
The report stated that the Chinese government and Hong Kong authorities have "systematically degraded Hong Kong’s political autonomy and civilians’ rights and freedoms" over the past several years. It also claimed that US citizens living in Hong Kong are at a "heightened risk of arrest, detention, expulsion, or prosecution." The local authorities dismissed the report as "wanton slander."
https://breakingthenews.net/Article/China-protests-US-report-on-Hong-Kong/66111027
Kallas: EU to make important decisions on Ukraine loan
European Union High Representative for Foreign Affairs and Security Policy Kaja Kallas announced on Tuesday that the bloc will make "important decisions" tomorrow regarding a €90 million loan to Ukraine.
"Ukraine really needs this loan, and it is also a sign that Russia cannot outlast Ukraine. This is extremely important at this moment," Kallas told reporters in Luxembourg, ahead of the Foreign Affairs Council meeting of EU Foreign Ministers.
Kallas also shared that the ministers will discuss the status of the Druzhba pipeline, as well as the situation in the Middle East.
https://breakingthenews.net/Article/Kallas:-EU-to-make-important-decisions-on-Ukraine-loan/66111288
Spain, Slovenia, Ireland call to suspend EU-Israel treaty
Spain, Slovenia, and Ireland have urged the European Union to consider suspending its association treaty with Israel, Spanish Foreign Minister Jose Manuel Albares told reporters on Tuesday before a meeting of EU foreign ministers in Luxembourg.
"Spain, along with Slovenia and Ireland, has requested that the suspension of the Association Agreement between the European Union and Israel be discussed and debated today," Albares said.
Spanish Prime Minister Pedro Sanchez called on Sunday to break the agreement, accusing Israel of violating international law and therefore the terms of the deal. However, the total suspension of the association agreement requires "unified position" among the countries, accourding to EU Foreign Affairs chief Kaja Kallas.
https://breakingthenews.net/Article/Spain-Slovenia-Ireland-call-to-suspend-EU-Israel-treaty/66111356
Iran denies reports that it sent team to Pakistan
No Iranian delegation has traveled to Islamabad, Pakistan, for talks with the US, Iran's state broadcaster IRIB said on Tuesday, debunking reports about the departure of Iranian officials, including claims about meeting times.
Iran's parliament speaker and head of its negotiating team, Mohammad Bagher Ghalibaf, said on Tuesday that Tehran "does not accept negotiations under the shadow of threats," raising questions about whether the second round will go as scheduled.
Nonetheless, US Vice President JD Vance, who will head the US delegation for a second round of negotiations with Iran, was expected to arrive in Islamabad on Wednesday.
https://breakingthenews.net/Article/Iran-denies-reports-that-it-sent-team-to-Pakistan/66111283
FDA accepts application for Roche’s Gazyva/Gazyvaro for most common form of lupus
- Filing acceptance based on phase III ALLEGORY data for Gazyva/Gazyvaro showing a significant reduction in disease activity compared with placebo in people with systemic lupus erythematosus (SLE)
- If approved, Gazyva/Gazyvaro would be the first anti-CD20 therapy to directly target B cells in SLE, potentially becoming the new standard of care for this condition1
- SLE is a potentially life-threatening autoimmune disease affecting more than three million people worldwide – achieving better disease control can reduce flares and may prevent irreversible organ damage
- https://www.roche.com/media/releases/med-cor-2026-04-21
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