Ethylene prices eased in parts of Asia last week while holding steady across Southeast Asia, reflecting a market caught between ample supply and guarded demand.
An industry source speaking on background told that lower-priced November-arrival U.S. cargo offers into Northeast Asia, combined with weak demand from polyethylene and styrene makers and adequate regional supply, pushed spot prices down. U.S. producers, benefiting from inexpensive ethane feedstock, sold aggressively, forcing Asian sellers to trim expectations. Many downstream plants in the region are running at reduced rates or are in maintenance because of thin margins and heavy inventories, softening appetite for fresh ethylene. Buyers, wary of volatile crude and naphtha markets, largely stayed on the sidelines and no firm deals were struck.
The same source said a rise in local cargoes in East China added to the surplus and further dampened sentiment, though import volumes arriving in October remain steady enough to lend some support to talks. Sellers kept offers stable in hopes of tighter balances ahead.
By Friday, FOB Korea ethylene was assessed at 805–815 USD/mt and FOB Japan at 800–810 USD/mt, both down about 5 USD from the previous week. CFR Northeast Asia slipped to 840–850 USD/mt, also off by 5 USD. Availability in Northeast Asia has improved with fewer cracker shutdowns and more deep-sea cargoes, even as South Korean crackers kept utilization rates largely unchanged. Spot supply there is still limited ahead of planned maintenance turnarounds in October, hinting at a near-term squeeze despite overall stability.
Southeast Asia told a different story. CFR prices held flat at 835–845 USD/mt despite tight supply. A force majeure at a Singapore cracker and reduced operating rates at a Malaysian plant continue to pinch output, yet balanced demand has kept prices in check.
Plant operations remain in focus. PTT Global Chemical is expected to take its 500,000 mt/year cracker in Map Ta Phut, Thailand offline in December 2025, though timing and duration are unconfirmed. Korea Petrochemical Industry Co. is also planning a shutdown of its 900,000 mt/year Onsan cracker in the fourth quarter of 2026, with details still pending.
