The Middle East situation remains uncertain; LPG deep processing faces pressure

GateUser-bd883c58 · 2026-03-30T00:32:37+00:00

The changing situation in the Middle East has led to weakened fluctuations in crude oil prices. Domestic LPG deep processing faces pressure, especially with declining terminal demand and high oil prices suppressing downstream industries. Reduced domestic and imported LPG may result in losses for the deep processing sector, and future plants might lower their operating rates to seek balance.

GateUser-bd883c58

2026-03-30 00:32:37

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Ask AI · How will changes in the Middle East situation affect the LPG deep-processing industry chain?

【The Middle East situation contains uncertainties; LPG deep processing faces pressure】Caixin Media reported on March 26 that market worries about the Middle East situation have eased, causing crude oil prices to trade weakly with fluctuations. Domestic LPG deep-processing units will face pressure. Looking at end-market demand for LPG deep processing: in China, gasoline is in a seasonal consumption lull, and further suppression of downstream demand due to high oil prices leads to expectations that gasoline and raw material prices will undergo broad-based cuts while staying at relatively high levels. From the perspective of the LPG spot market for raw materials, the current situation is that domestic production has declined and import volumes have decreased—this is an established fact. During the process of LPG falling, the expected downside magnitude is likely to be smaller than that of the downstream. LPG deep processing will once again face margin-pressure losses; in the future, behavior such as reducing operating rates of units to seek balance may increase. (Zhuochuang Information)

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