The European ethylene contract price for September 2025 has settled marginally higher, reflecting a market still balanced between steady demand and ample availability.
According to a source, the benchmark contract price was finalized at EUR 1,130 per metric ton FD Northwest Europe, up by EUR 5/mt from August’s settlement level. Market participants described the modest increase as an adjustment rather than a shift in trend, with fundamentals largely unchanged from the previous month.
Producers had initially sought stronger gains, citing recent volatility in upstream crude and naphtha values, but converters pushed back, pointing to weak downstream offtake and steady import flows. The settlement at a modest premium highlights the current equilibrium in the European market, where sufficient supply continues to counterbalance any cost-side pressures.
Demand across major derivative sectors such as polyethylene, PVC, and styrene remains subdued, with buyers exercising caution amid slow end-use consumption in packaging, automotive, and construction. Even so, September is traditionally a period when activity improves following the summer slowdown, and some converters have begun restocking in anticipation of higher operating rates in downstream facilities.
Industry observers noted that while the September settlement offers slight relief to producers, the overall market sentiment remains cautious. Ample inventories and ongoing import competition from the US and Middle East are expected to keep a lid on further price escalation. At the same time, potential supply disruptions from cracker turnarounds in Q4 could lend some stability to pricing, though much will depend on how demand evolves in the coming weeks.
The modest upward adjustment signals that while cost pressures are present, they are not yet strong enough to trigger a broader rally in European ethylene. Market participants will now focus on derivative demand trends and crude oil price movements to gauge whether October contracts can maintain upward momentum or revert to a flat settlement.
