Multiple Chinese Petrochemical Enterprises, Including Hengli Petrochemical Dalian Refining, Sanctioned by the US
On November 4, 2026 (US Eastern Time), the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued a notice adding secondary sanctions risk markers to a batch of entities already placed on the Specially Designated Nationals (SDN) List, tightening sanctions constraints.
A total of 136 China‑related entities are covered, concentrated in the petrochemical, crude oil terminal, shipping, energy trading and logistics sectors. All were added to the SDN List earlier over their involvement in Iranian oil and gas, petrochemical trading and shipping activities.
With the secondary markers in place, overseas parties engaging in significant transactions with these entities, particularly financial settlement arrangements, face a higher risk of being sanctioned by the US, including possible restrictions on US‑dollar clearing channels.
Petrochemical refining and terminal storage operators are the key targets of this action. The list includes several major domestic independent refiners and core crude oil storage and transportation companies, which are important nodes in China’s crude import and refined product distribution chain: Hengli Petrochemical (Dalian) Refining Co., Ltd., Shandong Jincheng Petrochemical Group Co., Ltd., Shandong Shengxing Chemical Co., Ltd., Shandong Shouguang Luqing Petrochemical Co., Ltd., as well as crude oil receiving terminal operators such as Rizhao Shihua Crude Oil Terminal Co., Ltd. and Shandong Jingang Port Co., Ltd.
These companies are mainly engaged in crude oil procurement, refining and processing, petrochemical trading and terminal storage and transshipment, and represent the upstream storage, transportation and production end of the petrochemical value chain. The addition of secondary sanctions markers means compliance risks have risen markedly for upstream and downstream partners, shipping agents and settlement institutions dealing with these entities.
“King of New Materials”Raises Prices by RMB 3,000/MT
On November 4, the Carbon Fiber Sales Center of Jilin Chemical Fibre Co., Ltd. issued a price adjustment notice, raising its carbon fiber products by RMB 3,000/MT, effective the same day. This is the company’s third price increase this year, with wet‑process 12K carbon fiber having risen by a cumulative RMB 13,000/MT. The direct driver is the high price of acrylonitrile, its core raw material.
Supported by earlier supply‑side contraction, acrylonitrile remains above RMB 12,000/MT. However, with the recent sharp drop in crude oil and weakening sentiment, cost support has loosened somewhat. ABS feedstock trends are currently diverging: styrene and butadiene have eased along with crude, while acrylonitrile continues to trade in a high range, keeping plant costs elevated.
Post time: Nov-09-2026