European ethylene markets slipped on Wednesday, with CIF Northwest Europe assessed at USD 815–825/mt, down USD 5/mt from Tuesday, despite rising upstream energy costs. The persistent sluggishness in downstream demand and buyer reluctance have weighed on sentiment, market sources reported.
In contrast, FD NWE ethylene prices remained unchanged at €720–730/mt, signaling a divergence between international CIF and delivered domestic pricing.
Meanwhile in Asia, ethylene pricing remained unchanged. CFR Northeast Asia was steady at USD 815–825/mt, consistent with the previous day’s assessment, underscoring a broader regional equilibrium.
A European industry insider noted that weak buying momentum continues to suppress price movement. With demand from the polyethylene and downstream sectors still muted, many buyers are delaying procurement decisions. The cautious outlook has compelled producers to adjust cracker operating rates and manage inventories in a bid to restore balance.
Europe’s structural headwinds, higher production costs, aging infrastructure, and expanding cheaper supply from Asia and the Middle East, reflect broader sectorial pressures. Many downstream plants continue to face overcapacity, with buyers and producers increasingly passive in the face of uncertain fundamentals.
In summary, Western markets are showing early signs of price vulnerability under weak derivative demand, while the Asia-Pacific region remains unaffected in the short term. Absent a change in supply–demand dynamics, further softening in European ethylene prices appears likely in the near term.
