For the Quarter Ending June 2025
North America
• For Q2 2025, the Ethylene Oxide Price Index averaged +0.5%, on an FOB US Gulf basis. Prices remained mostly stable and settled near USD 912/MT by end of June, supported by stable contract trades.
• Downstream demand, especially from the pharmaceutical and cleaning chemical sectors, helped balance the spot market, even with weak export demand.
• Why did the price of Ethylene Oxide change in July 2025? July saw a marginal uptick as suppliers sustained earlier pricing levels amidst limited spot market activity and reduced availability.
• Freight and logistics within the US remained uninterrupted, with normal trucking and railcar turnaround times.
• The Ethylene Oxide Demand Outlook for Q3 remains cautiously steady, with expectations tied to rebound in industrial solvents and surfactants.
• The Ethylene Oxide Production Cost Trend remained unchanged, with flat ethylene feedstock and operating costs; producers reported stable margins.
• Ethylene Oxide Spot Price is projected to stay firm in early Q3; the Ethylene Oxide Price Forecast suggests modest upside if inventory drawdowns occur in key sectors.
Europe
• The Ethylene Oxide Price Index averaged a decline of 1.2% during Q2 2025 on an FD basis, with prices settling near USD 985/MT by late June.
• Lower demand from automotive, textiles, and flexible packaging sectors, alongside higher inventory levels, weighed on market sentiment.
• Why did the price of Ethylene Oxide change in July 2025? The dip in July was triggered by subdued spot market buying, especially in Germany and The Netherlands, where buyers remained conservative due to sufficient stock.
• Regional logistics remained stable; no port congestion or intra-EU transport delays were reported.
• The Ethylene Oxide Demand Outlook remains muted amid lacklustre industrial activity and poor downstream momentum.
• The Ethylene Oxide Production Cost Trend stayed neutral; however, rising electricity and carbon costs slightly pressured overall margins.
• Ethylene Oxide Spot Price in Q3 may hover near Q2 levels. The Ethylene Oxide Price Forecast hints at potential stabilization if inventory reduction accelerates and downstream orders recover.
APAC
• The Ethylene Oxide Price Index fell by an average of 2.3% in Q2 2025 on an Ex- Japan basis, with prices closing around USD 885/MT by the end of June.
• Persistent weakness in Japanese domestic demand, coupled with increased supply competition from Chinese producers, kept prices under pressure.
• Why did the price of Ethylene Oxide change in July 2025? A further drop occurred as buyers delayed procurement, expecting further declines. Limited export opportunities and stagnant coatings demand added to the drag.
• Oversupply risks rose due to lower capacity utilization and competitive exports from China and South Korea.
• The Ethylene Oxide Production Cost Trend in Japan inched up, largely driven by utility and maintenance spending, though profitability remained thin.
• The Ethylene Oxide Demand Outlook for Q3 is expected to stay weak unless domestic manufacturing activity picks up.
• Ethylene Oxide Spot Price is likely to remain under pressure; the Ethylene Oxide Price Forecast suggests a flat-to-slightly bearish outlook into Q3.
MEA
• The Ethylene Oxide Price Index in the MEA region averaged a 0.6% decrease in Q2 2025 on an FOB AI Jubail basis, with prices closing around USD 1265/MT by late June.
• Spot market demand stayed flat due to limited downstream consumption and lukewarm export volumes toward South Asia and East Africa.
• Why did the price of Ethylene Oxide change in July 2025?
July saw minor declines as regional sellers faced resistance to offer prices, particularly from East African buyers. EO trading slowed as bulk converters awaited clearer pricing signals.
• Logistics and freight remained stable out of Saudi Arabia, with no reported shipping delays or port congestion.
• The Ethylene Oxide Production Cost Trend remained favourable due to low feedstock and energy costs, though subdued realizations slightly compressed margins.
• The Ethylene Oxide Demand Outlook for Q3 remains flat, with a small pickup expected only if glycol and surfactant exports improve.
• Ethylene Oxide Spot Price may remain weak across the region; Ethylene Oxide Price Forecast indicates limited recovery unless buying interest returns by mid-Q3.
For the Quarter Ending March 2025
North America
In Q1 2025, the North American ethylene oxide market experienced a dynamic shift, beginning with a phase of stability in January. Early in the quarter, steady feedstock availability and balanced supply-demand conditions supported consistent production levels. Key downstream sectors such as automotive, textiles, and detergents maintained stable demand, while interest in mono ethylene glycol (MEG) and polytetramethylene ether glycol (PTMEG) provided mild upward momentum.
Mid-January saw modest market strength due to increasing feedstock costs and heightened demand from MEG and PTMEG sectors. However, by February, the market shifted direction as feedstock ethylene prices declined, initiating a downward pricing trend. Despite stable demand in sectors like PET, MEG, and diethylene glycol, weak market sentiment and increased inventory levels weighed on the market.
The declining trend persisted through March, driven by further feedstock cost reductions and moderate-to-weak downstream demand. Although manufacturing activity adjusted accordingly, oversupply and sluggish buying interest intensified bearish pressure. Toward the end of the quarter, despite operational stability, the market remained under pressure with softened demand and lower raw material costs shaping overall sentiment.
APAC
In the first quarter of 2025, ethylene oxide prices in the APAC region, particularly Japan, showed a blend of volatility and stability, largely shaped by inventory adjustments, feedstock dynamics, and demand patterns. January began with a decline in prices, triggered by surplus inventories as manufacturers responded to previous overproduction or speculative stockpiling. Even with steady demand and feedstock supply, this imbalance between supply and consumption led to temporary downward pressure.
Mid-January saw continued softness due to reduced feedstock values and waning demand from sectors such as polyethylene terephthalate (PET), further influencing market sentiment. In early February, a modest price increase occurred as inventory levels drew down and slight supply tightness emerged, despite persistent weakness in downstream demand during the post-holiday slowdown.
As industrial activity resumed toward late February and into March, the market regained balance. Stable consumption from key downstream industries such as mono ethylene glycol, PET, and glycol ethers helped support steady operations. With manufacturing and supply chains running smoothly, the quarter closed with a well-balanced market outlook and expectations of gradual demand recovery across various industrial applications.
Europe
In Q1 2025, the ethylene oxide market in Europe, particularly Germany, experienced a shift from early stability to a softening trend by the end of the quarter. January began with balanced supply-demand conditions and steady feedstock costs, supporting consistent production and stable consumption across key sectors such as automotive, detergents, and textiles. Manufacturing operations ran without disruption, and the outlook remained optimistic due to reliable supply chains and stable industrial activity.
February saw minor upward movement early in the month, driven by rising feedstock costs and a slight uptick in demand from sectors like mono ethylene glycol and PET. However, the market stabilized shortly after, with supply and demand largely in equilibrium. Toward the end of the month, a notable price correction occurred due to lower feedstock prices, even though downstream demand remained steady.
March marked a pronounced downtrend as weakening feedstock costs, high inventories, and severe port congestion in Hamburg and Bremerhaven disrupted logistics. Despite stable demand in sectors like glycol ethers and PTMEG, overall market sentiment turned bearish. The combination of logistical challenges and subdued demand exerted continued downward pressure on prices throughout the month.
MEA
In Q1 2025, the ethylene oxide market in the MEA region, particularly Saudi Arabia, maintained relative stability, shaped by shifting feedstock dynamics and evolving demand patterns. January began with steady pricing, as manufacturers leveraged existing inventories to absorb rising feedstock costs. Demand from key sectors like automotive, detergents, and textiles remained consistent, allowing for smooth operations and market equilibrium.
Midway through the quarter, slight fluctuations occurred in response to changing feedstock prices and downstream demand. Inventory adjustments and cautious replenishment strategies by producers influenced short-term pricing. Demand from mono ethylene glycol and diethylene glycol segments showed mixed trends, with some sectors experiencing minor declines, while others remained resilient.
By March, market sentiment stabilized further, supported by steady feedstock costs and a balanced supply-demand environment. Notable improvements in demand from applications like antifreeze and industrial solvents helped sustain market activity. While the PET sector experienced minor dips in demand, other segments contributed to an overall balanced outlook. The quarter closed with improved buying sentiment and slight upward movement, signalling potential for gradual growth as industrial activity continues to expand.
For the Quarter Ending December 2024
North America
The ethylene oxide (EO) market in North America exhibited a distinct price trend during Q4 2024, characterized by a decline in the first half and an incline in the latter part of the quarter. During the first half of the quarter, the US market faced significant downward pressure.
This was primarily due to weak demand from key downstream sectors such as polyethylene terephthalate (PET) and automotive, which struggled with slower growth. Coupled with a decrease in ethylene prices and limited export opportunities, the market sentiment remained cautious. Additionally, disruptions like the aftermath of Hurricane Beryl and slowdowns in ethane recovery further contributed to the decline in EO prices. Despite stable supply conditions, the demand weakness led to a continuous price dip.
In contrast, the second half of the quarter saw a gradual price recovery. By December, a combination of year-end purchases and a controlled export environment helped stabilize and push EO prices upward. Manufacturers capitalized on the limited supply and steady demand, especially with expectations of higher procurement ahead. The market remained optimistic, projecting sustained price levels moving into early 2025.
APAC
In Q4 2024, the ethylene oxide market in the APAC region, particularly China, experienced a price trend characterized by a gradual increase in the first half followed by stability in the latter half. During the initial phase, ethylene oxide prices saw upward movement due to a combination of rising feedstock costs and improving demand from key downstream sectors like automotive and construction. This positive momentum was largely driven by strong procurement rates and market sentiment, despite oscillating feedstock prices. However, the anticipation of new production capacities coming online in the near future created a cautious market outlook, which limited the extent of price increases.
The second half of the quarter saw stability as supply and demand dynamics balanced out. The market experienced minimal fluctuations as increased production from overhauled units and the gradual release of new capacities added to the supply side. While demand from sectors like polycarboxylic acid water-reducing agents showed signs of weakening, other sectors such as surfactants and ethanolamines helped stabilize the market. By December, prices stabilized due to steady supply and moderate demand growth, with the absence of significant disruptions or changes in market conditions. Overall, Q4 2024 ended with a stable pricing environment after an initial period of growth.
Europe
The ethylene oxide (EO) market in the European region, particularly in Germany, during Q4 2024 exhibited a largely stable pricing trend in the first half of the quarter, followed by a slight decline in the second half. Initially, ethylene oxide prices remained relatively steady due to strong inventory levels and moderate supply dynamics, despite the broader downturn in ethylene and related markets. The weak demand from key downstream sectors, including packaging, automotive, and construction, hindered any significant price movements. Although the upstream ethylene market showed weakness, the overall balance between supply and demand helped stabilize EO prices.
However, as the quarter progressed, particularly in November and December, the market faced downward pressure. Weak demand from major end-use sectors, compounded by macroeconomic challenges such as rising inflation and political instability, contributed to the price decline. Additionally, supply-side constraints, including logistical issues and reduced imports, did little to offset the stagnant demand. In December, the slight uptick in production and export activity in certain sectors was not enough to reverse the overall bearish trend. Consequently, ethylene oxide prices ended the quarter on a cautious note, with market participants anticipating a continued slow outlook into 2025.
MEA
In Q4 2024, the ethylene oxide market in the MEA region, particularly Saudi Arabia, exhibited a dual-phase price trend characterized by a decline in the first half and a subsequent recovery in the latter half. The initial decline was driven by weak demand from downstream industries, including automotive, textiles, and consumer goods, coupled with high inventory levels. Although the supply remained stable, bolstered by consistent inflows from Asian markets and steady naphtha prices, the lack of significant bulk orders reflected the broader bearish market sentiment. Price reductions by producers, aimed at stimulating procurement, highlighted the challenges in balancing supply and demand amid muted market activity.
The second half of the quarter marked a turnaround as the market gradually recovered, fueled by several factors. The steady demand for monoethylene glycol (MEG) in Asian markets supported ethylene oxide pricing by stabilizing production and procurement levels. Additionally, rising chemical export rates and slight increases in raw material costs, driven by inflationary pressures and logistical adjustments, contributed to the positive sentiment. By December, surging export demand and improved cost dynamics further tightened supply, enabling producers to increase prices. Overall, Q4 2024 closed with a cautiously optimistic outlook, supported by robust export activity and recovering downstream demand.
For the Quarter Ending September 2024
North America
The third quarter of 2024 for Ethylene Oxide in North America has been characterized by significant price increases driven by a variety of factors. Tight supply situations, influenced by low production rates and maintenance shutdowns across the region, have led to a bullish market sentiment.
In the USA specifically, Ethylene Oxide prices have seen the most notable changes, with prices steadily rising. Market participants have reported increased feedstock Ethylene prices, contributing to elevated production costs and subsequently pushing Ethylene Oxide prices upwards. Demand from downstream industries has been stable to moderate, with inquiries from Latin America and Mexico boosting export prices. Additionally, disruptions caused by Hurricane Francine and maintenance shutdowns at key plants have further tightened supply, leading to price hikes.
Comparing to the same quarter last year, Ethylene Oxide prices have seen a significant 14% increase. Moreover, the quarter-on-quarter change in 2024 recorded a 11% increase, indicating a consistent upward trend. The second half of the quarter saw a 4% price increase compared to the first half. The quarter-ending price stood at USD 1493/MT of Ethylene Oxide Contract FOB US Gulf in the USA, reflecting a positive and increasing pricing environment.
APAC
Throughout Q3 2024, the Ethylene Oxide market in the APAC region has experienced increasing prices, driven by a combination of factors. The quarter has been characterized by stable demand from downstream industries, particularly in the Monoethylene Glycol and Ethoxylates sectors. This steady demand, coupled with tight supply conditions, has led to a bullish pricing environment. Additionally, rising feedstock Ethylene prices have contributed to the overall upward trend in Ethylene Oxide prices. In Japan, the market has seen the most significant price changes, with prices ending the quarter at USD 919/MT of Ethylene Oxide Ex-Osaka. The quarter saw a 3% price increase from the first half to the second half, highlighting a strengthening pricing trend. Despite a -4% decrease from the same quarter last year, the quarter-on-quarter change recorded a 2% increase, indicating a more positive pricing environment in the current quarter. Overall, the Japanese market has exhibited a consistent increase in prices, reflecting a positive sentiment in the pricing environment.
Europe
In Q3 2024, the Europe region experienced a significant increase in Ethylene Oxide prices, driven by multiple factors. Tight supply chains, influenced by low operating rates and disruptions at key production facilities, contributed to the price surge. Additionally, rising feedstock Ethylene costs and geopolitical tensions in the Middle East, impacting oil prices, further propelled the upward pricing trend. Netherlands, in particular, witnessed the most substantial price changes during the quarter. The overall trend in pricing showed a consistent increase, with seasonality and correlation playing a significant role in price fluctuations. Compared to the same quarter last year, prices were down by 5%, reflecting the recent surge. Furthermore, a 1% decrease from the previous quarter in 2024 was followed by a notable 4% increase between the first and second half of the quarter. The quarter-ending price of USD 1428/MT for Ethylene Oxide FD Rotterdam in Netherlands marked the culmination of this positive pricing environment, highlighting the ongoing upward trajectory in prices.
MEA
In Q3 2024, the Ethylene Oxide market in the MEA region experienced declining prices, influenced by several key factors. The market was characterized by a lower pricing environment, with minimal fluctuations observed. Factors such as weak demand from downstream industries, adequate supply levels, and moderate Ethylene Oxide feedstock prices contributed to the overall decline in prices. In Saudi Arabia, which saw the most significant price changes, the market trend mirrored that of the broader region. The percentage change from the same quarter last year stood at -1%, indicating a slight decrease in prices over the year. Moreover, the quarter-on-quarter change of -3% highlighted a marginal decline in prices from the previous quarter in 2024. Interestingly, the comparison between the first and second half of the quarter showed no significant price variation, underscoring the consistent pricing trend observed. The quarter-ending price for Ethylene Oxide USD 1243 per MT FOB Al Jubail in Saudi Arabia, reflecting the prevailing pessimistic sentiment in the market.
Frequently Asked Questions (FAQs):
Q1: What is the current price of Ethylene Oxide?
As of end-June 2025, Ethylene Oxide prices stood at approx. USD 1,700/MT FD US Gulf, EUR 1,830/MT FD NWE, USD 1,520/MT CFR Japan, and USD 1,480/MT FOB Jubail. Spot market prices vary by demand and logistics regionally.
Q2: Who are the top Ethylene Oxide producers in the United States?
Major U.S. producers include Dow Chemical, BASF Corporation, and Shell Chemicals, with operations primarily centred along the Gulf Coast.
Q3: What is the Ethylene Oxide Price Forecast for Q3 2025?
The forecast for Q3 points to rangebound movement across most regions, with potential for a mild uptick in North America and Europe, and continued weakness in APAC and MEA unless demand revives.
Q4: What affects the Ethylene Oxide Production Cost Trend globally?
Key drivers include feedstock ethylene prices, regional energy input costs, plant operational efficiency, and logistics or maintenance costs. Currency fluctuations can also influence margins in export-based regions.
