Ethylene prices in Europe moved higher midweek, supported by stronger regional demand that gave a lift to sentiment after a period of subdued trading. Market participants reported that improved buying interest from downstream sectors, coupled with firmer negotiations among traders and converters, helped push prices higher in the spot market.
An industry source in Europe told that, “The price increase was driven by stronger regional buying trends.” The source noted that while overall supply fundamentals remain balanced, the pickup in demand was sufficient to generate upward pressure, particularly in CIF assessments.
On Wednesday, ethylene prices were assessed at USD 750–760/mt CIF Northwest Europe, up USD 15/mt from Tuesday. However, FD NWE prices held steady, assessed at EUR 675–685/mt, reflecting more measured activity in the contract-linked domestic market. Analysts observed that the divergence highlights how short-term buying momentum can influence spot markets without immediately filtering through to longer-term contract settlements.
In contrast, Asian ethylene markets remained stable. CFR Northeast Asia prices were assessed at USD 835–845/mt, unchanged from Tuesday. Market participants in Asia noted that sentiment stayed cautious, with steady availability and limited downstream support from polyethylene and monoethylene glycol sectors preventing any significant price movement.
The midweek uptick in Europe suggests that regional buyers may be stepping in to replenish inventories ahead of September, though traders cautioned that demand fundamentals remain fragile. Unless momentum builds further in downstream consumption, particularly in packaging and construction-related applications, the price strength may be short-lived.
Nonetheless, the modest gains underline that Europe’s ethylene market retains sensitivity to even slight shifts in buying activity, in contrast to Asia where abundant supply continues to keep markets in check.
