Bloomberg reported, citing JPMorgan and ICIS analysis, that Chinese petrochemical product inventories are nearing depletion as the US-Iran conflict drags on. Goldman Sachs said Chinese companies have consumed 95% of the petrochemical stockpiles built last year.
China's MEG inventory fell 89.8% from 966,000 mt in February to 99,000 mt in September, according to BloombergNEF. Naphtha exports remain limited even as Middle East energy exports show some recovery.
China's producer price index rose 5% year on year in September, above the 4.5% forecast, the highest since June 2022, with petroleum and chemicals manufacturing prices up sharply.
JPMorgan analyst Parsley Ong said petrochemical inventories are effectively at the bottom and Chinese supply shortages are already driving up prices for most products.
Global synthetic rubber prices reached 16,133 yuan/mt on October 21, up 39.43% from a year earlier.
