Ethylene prices pulled back from April’s rally as spot availability rebalanced and feedstock tightness eased, signaling a shift from earlier strength to a softer near-term tone. Naphtha disruptions and global supply concerns had driven the late-April squeeze, while mid-April saw Gulf Coast crackers run at high rates, tightening prompt supply and supporting momentum. By mid-May, buyers exhibited caution, and arbitrage flows to Europe and Latin America helped temper domestic momentum, leaving trade rangebound before a sharper downward move in the latest week. Demand patterns remained mixed across end-use sectors, with domestic polyethylene and packaging chains continuing to support ethylene uptake; North American producers ran at relatively high utilization, underpinning offers despite weaker downstream spot buying in some segments. Export activity remained a bright spot as traders moved cargoes into Benelux and Latin America, reinforcing international appetite. The near-term outlook remains soft, with continued sensitivity to prompt supply, feedstock moves, and broader export dynamics.
