U.S. Ethane Exports to China Under Threat: Export License Now Required
Chinaβs purchases of U.S. ethane, a key raw material for the petrochemical industry, are now facing uncertainty. The U.S. Department of Commerce has advised exporters to apply for licenses to ship ethane and butane to China, and has reportedly revoked some previously issued permits, according to Reuters.
This creates a new obstacle for Chinese imports, which hit a record 492 thousand barrels per day in 2024 β nearly half of total U.S. ethane exports.
Although China recently raised tariffs on many U.S. goods to 125%, it exempted manufacturers critically dependent on ethane imports from the U.S.
Chinaβs purchases of U.S. ethane, a key raw material for the petrochemical industry, are now facing uncertainty. The U.S. Department of Commerce has advised exporters to apply for licenses to ship ethane and butane to China, and has reportedly revoked some previously issued permits, according to Reuters.
This creates a new obstacle for Chinese imports, which hit a record 492 thousand barrels per day in 2024 β nearly half of total U.S. ethane exports.
Although China recently raised tariffs on many U.S. goods to 125%, it exempted manufacturers critically dependent on ethane imports from the U.S.
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