For the Quarter Ending March 2025
North America
In Q1 2025, the North American ethylene market began with a strong recovery supported by rising export demand, particularly from India. Production remained stable through January, while proactive stockpiling ahead of planned maintenance activities drove heightened demand. Weather-related disruptions in Texas and Louisiana, including extreme cold and snowfall, further tightened supply by causing unplanned outages. These factors created a supply-constrained environment despite relatively stable domestic consumption, pushing market sentiment into a bullish phase through the end of the month.
In February, the market experienced a shift. As stockpiling ended and production normalized, prices began to soften. Maintenance turnarounds limited output temporarily, but reduced feedstock costs and easing natural gas prices helped stabilize operations. Ethylene demand remained steady, primarily supported by downstream sectors such as packaging and automotive. However, rising ethane exports to Asia, particularly China, kept international interest strong, even as domestic consumption trends stayed flat.
By March, oversupply and weaker downstream demand, especially from polyethylene sectors, pressured the market. Producers adjusted output to manage inventories, reflecting a cautious approach amid subdued buying activity and declining feedstock costs.
APAC
In Q1 2025, Japan’s ethylene market experienced fluctuating conditions shaped by shifting supply-demand dynamics, downstream industry performance, and regional trade influences. December ended on a firm note, supported by strong demand from key sectors like automotive and packaging, as well as increased buying interest from Northeast Asia. Despite planned maintenance at major crackers, domestic production remained unaffected, maintaining supply stability.
The start of January saw a brief slowdown due to post-holiday caution and softened demand, though imports into countries like Vietnam and India helped support a stable export environment. Throughout the month, stable naphtha supply and consistent domestic production kept the market well-supplied, though rising competition and economic headwinds from regional markets limited upward momentum.
February brought renewed buying interest, especially from packaging and film sectors, contributing to a mild market recovery. Supply constraints, coupled with steady demand, led to tightening market conditions despite lower feedstock prices. In March, this trend continued, with producers adjusting output to match demand in LLDPE and LDPE sectors. Although the HDPE sector saw a minor dip, steady downstream consumption supported an overall stable outlook for the ethylene market.
Europe
In Q1 2025, ethylene prices in Europe, particularly in Germany, showed moderate shifts driven by a combination of supply constraints, energy cost fluctuations, and uneven demand patterns. During January, prices stabilized as producers faced high operational costs and limited profitability, leading to reduced production and facility closures. Although this tightened supply, increased exports from the United States helped offset shortages. Demand remained subdued, especially in the chemical and pharmaceutical sectors, resulting in minimal price movement.
In February, prices rose due to higher feedstock and energy costs, along with logistical disruptions and congestion at key ports. Demand varied across sectors, with low density polyethylene gaining traction while other segments like high density and linear low-density polyethylene remained steady. The market outlook stayed cautious, reflecting limited domestic consumption.
March began with declining prices as overproduction and weak buying sentiment persisted. However, by the end of the month, stronger demand from packaging and consumer goods, combined with renewed supply chain issues, led to a price increase. The quarter ended with a cautiously optimistic sentiment amid ongoing structural adjustments.
MEA
In Q1 2025, ethylene prices in the Middle East and Africa region, particularly in Saudi Arabia, reflected a generally stable but cautious market. In January, prices fluctuated mildly due to changes in feedstock costs, including crude oil, naphtha, and ethane. While steady demand and sufficient supply helped maintain market equilibrium, external pressures such as increased U.S. ethane production and strategic feedstock pricing adjustments introduced some volatility.
Throughout February, market stability remained the key theme. Despite slight fluctuations in feedstock prices and modest growth in downstream segments like packaging and plastics, ethylene prices showed minimal variation. Steady demand across domestic and export markets, especially from Asia, helped balance any short-term cost shifts.
In March, the market continued to show resilience with only limited price movement. While demand for high-density polyethylene increased, consumption in the automotive and consumer goods sectors softened. Supply remained adequate, with production adjustments aligning with sector-specific needs. Overall, the MEA ethylene market closed the quarter in a stable position, supported by balanced supply-demand dynamics and cautious optimism in export markets.
For the Quarter Ending December 2024
North America
In Q4 2024, North America’s ethylene market experienced a two-phase trajectory, starting with a significant decline in October, driven by weak demand from downstream sectors, including polyethylene, and oversupply caused by robust production rates and subdued export activity to Asian markets.
The bearish trend persisted into early November, with stagnant prices due to balanced supply-demand dynamics and stable raw material costs. However, the latter half of the quarter marked a shift as ethylene prices began recovering in December, fueled by rising production costs and expanding export capacities targeting Europe, where energy costs and supply challenges presented opportunities for U.S. producers.
Demand recovery was modest but supported by increased reliance on U.S. ethylene imports from Europe and steady global demand for derivatives. By December, increased production costs, export optimism, and infrastructure expansion helped offset earlier losses, stabilizing the market. Overall, Q4 2024 for North America's ethylene market showcased a challenging start with significant declines, followed by a steady recovery driven by increased production costs and export opportunities.
APAC
In Q4 2024, the ethylene market in the Asia-Pacific (APAC) region, particularly in China, exhibited an overall upward trajectory, driven by improved downstream demand, economic recovery measures, and favorable supply dynamics. The quarter started with cautious optimism as ethylene prices in October gained support from the peak consumption season and strategic economic policies aimed at boosting industrial activity. Demand from key sectors such as automotive, packaging, and textiles helped stabilize the market despite concerns over potential oversupply due to new production capacity. A gradual decline in feedstock naphtha prices further supported profitability for ethylene producers.
By November, the market experienced a notable 1.2% price increase, reflecting reduced inventory pressures and sustained demand from downstream polyethylene markets like HDPE and LDPE. Increased intra-Asian freight costs and domestic shutdowns also contributed to the price rise, as supply constraints and higher import costs impacted market dynamics. Active buying for December shipments in Northeast Asia, including China, drove robust demand, positioning the market for further price improvements.
December saw continued recovery, supported by robust buying activity for upcoming shipments and the anticipation of a strong demand outlook for early 2025. Although prices slightly declined in the final weeks of December due to subdued industrial activity, market sentiment remained positive, with expectations of recovery fueled by government stimulus measures and growing downstream demand. Overall, Q4 2024 reflected a recovering ethylene market in APAC, underpinned by strong consumption and favorable economic conditions.
Europe
In Q4 2024, the European ethylene market exhibited an overall declining trend, primarily driven by subdued demand, economic challenges, and oversupply concerns. In October, prices initially stabilized due to balanced supply-demand dynamics despite bearish naphtha prices and a weakening manufacturing sector, particularly in Germany, where industrial output contracted sharply. The temporary support from downstream polyethylene sectors like HDPE was insufficient to sustain market momentum, leading to a significant 5.14% price drop during the month. Weak consumer sentiment and low purchasing activity further suppressed demand, while lower freight rates from Asia increased product availability, adding downward pressure.
The downward trend persisted in November, marked by continued oversupply, muted demand, and inventory build-ups. Discounting strategies by traders failed to stimulate procurement, and declining feedstock prices reduced production costs, lowering price quotations further. The petrochemical sector faced challenges from lackluster consumer momentum and limited recovery in downstream markets, maintaining a bearish outlook.
December brought slight relief as feedstock costs rose, driven by increased natural gas prices and a mild recovery in downstream demand. However, the market largely stagnated toward the end of the quarter, reflecting cautious sentiments among market participants.
Overall, Q4 2024 for Europe’s ethylene market was marked by significant declines due to weak demand, oversupply, and economic challenges, with only limited recovery toward the year-end.
MEA
In Q4 2024, the ethylene market in the Middle East and Africa (MEA) region, particularly in Saudi Arabia, experienced a bifurcated price trend, characterized by a decline in the first half of the quarter and a recovery in the second half. The early part of the quarter saw ethylene prices decline due to weak domestic demand and oversupply in the downstream petrochemical sectors. A subdued performance in key downstream industries, particularly polyethylene, along with a drop in crude oil prices due to increased OPEC+ output, weighed on production costs and market sentiment. Despite stable naphtha prices, an oversupply of inventories and reduced procurement activity further exacerbated the bearish stance. Producers, aiming to clear stockpiles, reduced price quotations, which pressured margins and highlighted the fragile market environment.
In the latter half of the quarter, the market rebounded, driven by global supply chain disruptions and tightening ethylene supplies in Europe and the U.S. Elevated freight rates and export disruptions bolstered Saudi Arabia’s competitive position in global markets, spurring increased demand for its ethylene exports. Stable regional demand, coupled with rising prices in European markets and a stronger U.S. dollar, allowed Saudi producers to raise prices. Overall, Q4 2024 showcased a challenging start but ended on a positive note for the MEA ethylene market, underscored by shifting global dynamics and export-driven recovery.
For the Quarter Ending September 2024
North America
The third quarter of 2024 has been a period of significant price escalation for Ethylene in North America, with the USA experiencing the most notable price fluctuations. Various factors have contributed to the surge in market prices thus creating optimistic market sentiments.
Tight supply conditions, driven by low production rates and plant maintenance shutdowns, have limited Ethylene availability, leading to a bullish market sentiment. Additionally, strong demand from the downstream Polyethylene sector, particularly in the packaging industry, has further bolstered prices. The quarter-on-quarter price increase of 44% underscores the growing market dynamics.
Comparing the first and second half of the quarter, prices surged by 20%, indicating a rapid acceleration in the pricing environment. Overall, the price trend for Ethylene in the USA has been overwhelmingly positive, with an impressive 51% increase from the same quarter last year. The quarter-ending price of USD 735/MT for Ethylene Spot FOB US Gulf in the USA reflects the robust and continuously rising pricing landscape in the region.
APAC
Ethylene pricing in the APAC region during Q3 2024 has seen a consistent decrease, influenced by various factors. The market has been impacted by weak demand from downstream industries, particularly in the Polyethylene sector, leading to oversupply and subsequent price drops. Additionally, reduced operating rates in manufacturing firms and supply constraints due to plant shutdowns have further contributed to the downward pressure on prices. Japan, in particular, has experienced significant price changes, with limited availability of Ethylene and technical issues at major production facilities leading to tighter supplies and higher prices. Overall, the quarter has seen a decline of 6% compared to the same quarter last year, reflecting the ongoing bearish trend. Moreover, the quarter-on-quarter change of -2% indicates a consistent downward trajectory in pricing. The second half of the quarter showed a further decrease of 1%, culminating in the latest quarter-ending price of USD 833/MT of Ethylene FOB Tokyo in Japan. This continuous decrease highlights the negative pricing environment prevailing in the market.
Europe
Throughout Q3 2024, Ethylene prices in Europe experienced a significant increase, with Germany being the most affected market. This surge in prices can be attributed to a combination of factors such as tight supply situations, increased feedstock Naphtha prices, and global oil price fluctuations. Demand from downstream industries, particularly Polyethylene and Ethylene oxide, remained subdued, contributing to the upward pressure on prices. The quarter saw a notable 27% increase compared to the same period last year, with a 10% increase from the previous quarter in 2024. Price changes within the quarter also showed a 17% difference between the first and second half. Germany, in particular, witnessed substantial price fluctuations, with Ethylene FD Hamburg reaching USD 1011/MT by the end of the quarter. Creating optimistic market sentiments throughout Q3 2024. This continuous upward trend in prices indicates a positive pricing environment, driven by supply constraints, rising production costs, and limited imports, ultimately leading to a bullish market sentiment in the region.
MEA
In Q3 2024, the MEA region witnessed a decline pricing environment for Ethylene. This quarter was characterized by consistent pricing trends, influenced by various factors. The market prices were primarily impacted by subdued demand from downstream industries, particularly in the plastics and packaging sector, leading to a surplus in supply. Additionally, fluctuations in feedstock Naphtha prices and global economic conditions contributed to the stability in Ethylene prices. Focusing on Saudi Arabia, which experienced the most significant price changes, the market reflected an overall negative trend compared to the same quarter last year, with a decrease of 9%. Moreover, there was a 0.48% decrease from the previous quarter in 2024. The comparison between the first and second half of the quarter showed no significant price changes, maintaining a stable trajectory. The quarter-ending price for Ethylene FOB Al Jubail in Saudi Arabia stood at USD 825/MT, indicating a consistent and stable pricing environment in the region.
For the Quarter Ending June 2024
North- America
Ethylene prices have significantly increased in the US market throughout the second quarter of 2024 on the back of improved demand dynamics and restricted inventories. The feedstock Ethane prices increased throughout the quarter which escalated the production cost of Ethylene within the domestic market, leading the bullish market sentiments about Ethylene among the end-users.
However, energy prices have showcased volatility during the Q2 of 2024. In addition, the domestic demand for Ethylene from the downstream Polyethylene industry has been strong from both processors and resellers amid the summer peak season which lifted the prices of Ethylene in the domestic market. Meanwhile, export demand from Latin America mainly Brazil has also been observed on the higher end as Latin American buyers, facing high freight costs and delays from Asia amid port congestion, turned to the US for quicker and more competitive supplies.
Furthermore, the operating rates remained low and as a result, the material availability was inadequate to meet the downstream demand. On the other hand, the indefinite closure of the Port of Baltimore after a bridge collapse has impacted the supply of various commodities including Ethylene. Thus, prices of Ethylene FOB US Gulf were settled at USD 510/MT with a month-on-month increment of 14.1% during June 2024.
Asia- Pacific
Ethylene prices have witnessed a downward trend across the Japanese market during the second quarter of 2024 owing to weak demand from derivative sectors coupled with sufficient supply in the domestic market. The feedstock Naphtha prices have persistently declined amid adequate inventories and limited demand which resulted in the low production cost of Ethylene in the domestic market, contributing to a downward shift in the price realization of Ethylene in the domestic market. On the demand front, the inquiries from the downstream Polyethylene industry were average as consumption from the end-user plastic and packaging sector has declined which weighed down the prices of Ethylene in the domestic market. In addition, downstream production margins remained weak, with buyers citing poor profitability on key derivatives such as Polyethylene. In the meantime, demand from the overseas market has also tepid amid weak buying trends among the end-users during the week. However, as per the market sources, Japan’s exports surged 13.5% in May, faster than expected growth helped by a weak yen.
Additionally, the operating rates have been steady to balance out underperforming demand. The material availability was observed on the higher end, keeping the prices downtrend in the domestic market. Therefore, prices of Ethylene FOB Tokyo were settled at USD 848/MT during June 2024. Mitsui Chemicals, Ichihara has shut down the Ethylene plant amid maintenance turnarounds, but it had a minimal impact on the supply of Ethylene.
Europe
The second quarter of 2024 has been notably challenging for the Ethylene market in Germany, characterized by a downward trend in Ethylene prices. Despite the challenging landscape, signs of cautious optimism are emerging amid the recent rally in freight rates and container shortage. The feedstock Naphtha prices declined throughout the quarter resulting in the low production cost of Ethylene which weighed down the prices of Ethylene in the domestic market. However, upstream crude oil prices have showcased a fluctuation during the Q2 of 2024.
Furthermore, underlying weakness in the domestic Ethylene market continued to call for limited demand from the downstream Polyethylene industry. Converters still preferred to buy on a need basis, while buying interest further declined amid macroeconomic headwinds in the domestic market. Overall, subdued downstream demand contributed to a downward shift in the price realization of Ethylene within the domestic market.
On the other hand, the supply of Ethylene was sufficient despite the low domestic operating rates, keeping the prices downward. At the same time, persistent delays in shipments from Asia continued to affect the market, causing port congestion and delayed arrivals at the warehouse. Also, freight charges have remained on the higher end amid the Red Sea crisis. However, it had a minimal impact on the prices of Ethylene as buyers were reluctant to purchase the material as demand remained flat at low levels while inventories remained healthy. Additionally, market conditions were expected to remain fairly stable up to August, with more uncertainty after summer. Thus, prices of Ethylene FD Hamburg were settled at USD 795/MT with a monthly decrement of 3.0% during June.
Middle- East
Ethylene prices have witnessed a downward trend across the Saudi Arabian market during the second quarter of 2024 in the wake of thin derivative demand and excessive supply. The cost supported by feedstock Naphtha was limited to Ethylene as its prices settled on the lower end, causing the prices to follow a downtrend in the domestic market. On the other hand, the domestic Ethylene market experienced a subdued trading momentum, as reflected in the weakening purchase appetite for materials. The adverse impact on market sentiment arises from a combination of bearish factors comprising weak demand from the downstream Polyethylene industry amid holiday lulls. Additionally, consumers were seen preferring to make need-based purchases owing to a fall in orders from end-user industries, which weighed down the prices of Ethylene in the domestic market. Meanwhile, demand from the overseas markets has also flat with expectations that it may not recover soon amid external challenges. Moreover, the supply of Ethylene was sufficient amid a decline in new orders to meet the overall downstream demand which further deteriorated the prices of Ethylene in the domestic market. Thus, during June prices of Ethylene FOB Al Jubail were settled at USD 863/MT with a decrement of 2.7% on a monthly basis.
