Ethylene spot prices in the U.S. softened last week, driven by a supply-demand imbalance. A source told that “abundant availability from consistent production has led to elevated stock levels, outpacing demand and pushing prices downward.” Key downstream sectors like packaging and construction have scaled back purchases, weakening sentiment and stalling any potential price recovery.
Although demand from HDPE, LDPE, and LLDPE producers remained relatively stable, it wasn’t enough to counteract the slowdown in end-use consumption. Ethylene production continued at a steady pace, and with inventories already high, the market tipped into oversupply. Notably, this price dip occurred despite rising feedstock costs.
By Friday, U.S. spot ethylene was assessed at 19.50–20.00 cents per pound F.D. U.S. Gulf, marking a week-on-week decline of approximately 0.50 cents. Asia mirrored this trend, with prices in Northeast Asia falling by USD 35/tonne to USD 805–815/tonne CFR.
Contract prices also reflected the bearish tone: the U.S. August 2025 ethylene contract settled at 32.00 cents per pound, down 0.50 cents from July.
Overall, the market remains under strain. Steady cracker operations, rising inventories, and subdued downstream demand continue to erode pricing power. Both suppliers and buyers are now watching for any signs of demand recovery or production cuts that could restore balance to the market.
