US Ethylene Prices Fall 3.5% in Early September 2026 as Feedstock Pressure Eases

US ethylene spot prices retreated in early September after August gains as improved logistics and easing feedstock pressure reduced some of the support behind Gulf Coast offers. August trading had benefited from intermittent ethane disruptions, higher upstream costs, and temporary production outages, while selective demand from packaging and solar-related applications supported buying. By early September, however, the market began to rebalance as several operational constraints eased, and downstream polyethylene demand remained measured. The broader U.S. industrial environment remained supportive, with factory orders rising in July, although the improvement was concentrated in selected sectors rather than a broad acceleration in resin consumption. Energy markets have become a renewed source of uncertainty: Brent crude moved above USD 100/bbl in September amid escalating Middle East tensions, potentially raising future cracker costs. Meanwhile, U.S. natural-gas production is expected to reach a record 111.7 Bcf/d in 2026, limiting near-term energy-cost pressure. The outlook therefore remains firm to stable, with feedstock volatility and supply reliability determining the next move.