Ethylene prices in Asia showed a mixed performance last week, climbing in Southeast Asia while remaining unchanged in other key regional markets. The upward movement in Southeast Asia was largely driven by concerns over short-term cargo availability, creating a climate of uncertainty that continues to bolster prices.
Industry participants explained that operational disruptions and scheduled plant turnarounds across Asia have begun to limit the amount of ethylene circulating in the market. Buyers, concerned about the possibility of tighter supplies in October, have accelerated procurement, securing cargoes at higher levels to safeguard their needs. This precautionary buying has strengthened sellers’ positions, allowing them to maintain recent gains.
By the end of the week, CFR Southeast Asia ethylene prices were assessed at USD 835–845 per metric ton, reflecting a week-on-week increase of USD 10. In contrast, stability was observed in other regions. FOB Korea prices were assessed flat at USD 795–805 per metric ton, while FOB Japan levels held steady at USD 790–800 per metric ton. CFR Northeast Asia prices mirrored this stability, assessed at USD 835–845 per metric ton, unchanged from the previous week.
Market participants anticipate further supply-side restrictions in the coming months, particularly in the fourth quarter, when several South Korean facilities are expected to undergo scheduled maintenance. Such outages could trim overall production capacity and reduce the volume of US dollar–denominated shipments available in Northeast Asia. This would likely amplify upward pressure on regional prices, as constrained availability enables sellers to demand higher values.
On the demand side, the reopening of the US–Asia arbitrage window initially created expectations of increased interest in US cargoes. However, inquiries for these shipments have remained limited. Persistent tariffs, logistical delays, and regulatory complications continue to restrict the flow of US-sourced ethylene into Asia, leaving most downstream buyers reliant on regional supplies. The preference for intra-Asian cargoes, combined with limited US inflows, is sustaining the upward bias in the market.
Adding to the complex supply outlook are several developments on the plant front. Chandra Asri Petrochemical has postponed the planned maintenance turnaround of its cracker in Cilegon, Indonesia, to January 2026. The shutdown was initially scheduled for November 2025 and expected to last around 50 days, though specific details remain unconfirmed. The facility has an ethylene production capacity of 900,000 metric tons per year and propylene capacity of 490,000 metric tons per year.
In Japan, Keiyo Ethylene is preparing for a maintenance turnaround at its cracker in Chiba, anticipated for the second half of January 2026. The duration of the overhaul has not yet been disclosed. The cracker is one of the largest in the country, with an ethylene capacity of 768,000 metric tons per year and a propylene capacity of 450,000 metric tons per year.
Meanwhile, in China, PetroChina Jilin Petrochemical has successfully commenced operations at its newly constructed cracker in September 2025. The facility, located in Jilin, boasts an ethylene capacity of 1.2 million metric tons per year and a propylene capacity of 587,000 metric tons per year. Although an official company statement is still awaited, the startup represents a significant addition to China’s domestic supply.
Taken together, these plant developments reinforce the delicate balance of supply and demand shaping Asia’s ethylene market. While seasonal factors and buyer caution continue to temper demand growth, the interplay of planned maintenance, operational delays, and new capacity will determine whether current upward momentum persists or stabilizes in the weeks ahead. For now, Southeast Asia remains the focal point of rising prices, even as broader Asia holds steady under the weight of both opportunity and uncertainty.
