Middle East Conflict Triggers Global Ethylene Crisis, Output To Plunge 12% In 2026

On March 27, the front-month futures contract of styrene surged 6% intraday to 10,631.00 yuan.

Caifeng News, March 27: Toray Industries of Japan will introduce a surcharge mechanism for certain products, including resins and carbon fibers, to promptly reflect fluctuations in raw material costs.

According to Walt Hart, Global Head of Olefins at S&P Global Energy CERA, the Strait of Hormuz has effectively been blockaded, impacting Asian petrochemical producers. Coupled with the shutdown of steam cracker units in the Middle East and reduced operating rates at Asian plants due to feedstock shortages, global ethylene production in 2026 is expected to decline by approximately 22 million tons—equivalent to 12% of global total production in 2025.

On March 26, the full-scale commissioning ceremony of the BASF (Guangdong) Integrated Site was held on Donghai Island in Zhanjiang City. The site is China's first large-scale foreign-funded integrated petrochemical project, and the largest single project invested by a German company in China. With a total investment of about 8.7 billion euros, it is independently operated and managed by BASF, and has become its seventh integrated site globally, and the third largest integrated production base after the sites in Ludwigshafen, Germany, and Antwerp, Belgium.

March 25th,Dali Long(002209) announced that the company recently received government subsidies related to income amounting to 14 million yuan, which accounts for 14% of the company's most recent audited financial statement.Net profit attributable to owners of parent20.06% of the total. This subsidy is a government subsidy related to income, and is expected to increase the company's annual profit.