01/29/26 The Ethane Trade War…Are We Tired of Winning Yet?

What is ethane? If you guessed that it was an industrial hydrocarbon gas you would be right. More specifically, it is the feedstock from which ethylene is produced. Ethylene is an ingredient used in the manufacturing of many industrial products… plastics (polyethylene, PVC, polystyrene), antifreeze (ethylene glycol), textiles (polyester), detergents, solvents, and packaging materials like foam insulation, as well as in agriculture to ripen fruits. It’s the world’s most produced organic compound, essential for creating products like plastic bags, pipes, medical devices, tires, and even as a sterilizing agent for food and medical supplies. China imports a lot of it…80% of its industrial needs.  The US was the largest producer of ethane and by far the dominant exporter of ethane to China. Used to be that is. Past tense.   President Trump mistook ethane for having “rare earth mineral-like” leverage in trade with China. We had it…they needed it…sort of thing. All true. However, unlike rare earth minerals, which China controls via having 90% of global processing, there are alternative suppliers of ethane China could get what they needed from. Last May the US placed export licensing requirements on US ethane exports going to China and stopped two ships carrying ethane…