Ethylene spot prices in the US dropped last week amid weak market activity and declining crude oil values.
An industry source told Polymerduniya, “Ethylene spot prices fell due to weak market activity and declining crude oil prices. Decreased offer levels resulted in the decline, with no transactions reported. The drop was also linked to oversupply and limited activity across downstream sectors. Demand in packaging and industrial uses remained soft.”
The source added, “US ethylene production stayed stable, creating plentiful supply and high inventories. While manufacturing activity remained strong, downstream demand in packaging and construction weakened, deepening the negative market outlook. With inventories elevated and supply-demand imbalances persisting, downward pressure on ethylene prices continued. Market participants also showed caution, avoiding large purchases due to economic uncertainty.”
Ethylene exports had risen following a decline in ethane shipments during the second quarter and remained above expectations through the period. However, with vessels shared between ethane and ethylene transport, a reduction in ethylene exports is anticipated in the third quarter. Market participants have already begun observing weaker export activity for September. Meanwhile, demand in the US polyethylene market stayed sluggish, with minimal buying interest.
Overall, sentiment in the US ethylene market remains subdued, with expectations of limited near-term activity. Oversupply, muted downstream demand, and economic headwinds are forecast to keep prices under pressure in the weeks ahead.
On Friday, ethylene spot prices were assessed at 23.00–23.50 cents/lb FD US Gulf, down 2.00 cents/lb from the previous week.
In Asia, ethylene prices moved in the opposite direction, assessed higher at USD 820–830/mt CFR Northeast Asia, up USD 5/mt week on week.
In the contract market, US ethylene prices for July 2025 settled at 32.25 cents/lb, reflecting an increase of 1.50 cents/lb from June 2025 levels.
