OilChem: Cracking C5 production plummets as geopolitical tensions reshape supply

China's industrial cracking C5 market is facing a significant supply contraction, with production levels hitting consecutive lows as geopolitical instability in the Middle East continues to ripple through global energy supply chains.

According to the latest OilChem data, 65% of domestic cracking C5 producers have implemented output cuts. Weekly production has fallen to 65.4 kt as of March 26, 2026, marking a 5.1% decline WoW and a staggering 20.6% cumulative drop since late February. The contraction is driven largely by operational shifts