Rising demand from China has caused a record increase in U.S. ethane exports amid the Iran conflict and a shortage of petrochemical feedstock on the global market, the Financial Times newspaper reported.
In March, American ethane exports reached a record 776,000 barrels per day, which is 47% higher than last year, according to the publication. Almost three-quarters of these shipments went to China.
The conflict around Iran has disrupted supplies of naphtha, a petrochemical feedstock produced from oil primarily in the Middle East, the newspaper noted.
"Against this backdrop, Chinese companies have begun to actively purchase American ethane as a cheaper alternative for plastics production," the report reads.
Experts believe that the elevated level of exports will persist in the coming months, despite problems with tanker availability and delays in transit through the Panama Canal, the FT wrote.
