China's Wanhua Chemical suspends benzene deal with U.S. sanctions-hit Hengli
China's Wanhua Chemical has suspended a long-term agreement to buy benzene from Hengli Petrochemical after Hengli was placed under U.S. sanctions last Friday for allegedly buying Iranian oil, three industry sources said on Thursday.
Hengli has denied the U.S. allegations.
East China-based Wanhua Chemical is the country's largest buyer of benzene, which is used to make methylene diphenyl diisocyanate, or MDI, an intermediate for manufacturing foams, coatings and elastomers.
Wanhua is the world's biggest MDI producer.
The deal involves between 120,000 and 240,000 metric tons of annual benzene supplies from northeast China-based Hengli Petrochemical, one of the people said.
The sources declined to be named due to the sensitivity of the matter. Wanhua declined to comment.
Hengli Petrochemical's investor relations officials did not immediately respond to an emailed request for comment.
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