Zerohedge;
To begin the week, we highlighted a potential breaking point emerging in the global economy due to the escalating tariff war: Chinese plastics manufacturers—heavily reliant on U.S. petrochemicals—now face production halts as shipments are increasingly being diverted from the world’s second-largest economy.
Bloomberg cites new ship-tracking data showing that a very large gas carrier hauling U.S. propane has diverted from its initial destination in China to a new port of call in Japan.
The data showed that BW Gemini is hauling 46,000 tons of propane from the U.S. The gas tanker left Phillips 66 Freeport LPG Export Terminal in late March and was initially headed for Yantai, China. However, in recent days, while traversing the Pacific Ocean, the port of call was changed to Imari, Japan. […]
Chinese plastics factories that depend on a gas they mainly import from the U.S. are contending with the prospect of widespread shutdowns as the world’s two largest economies bunker down for a prolonged trade war
The note titled “Chinese Plastics Factories Face Mass Closure As US Ethane Supply Evaporates” focused on ethane, a petrochemical feedstock to produce ethylene, one of the most critical building blocks in modern manufacturing.