MarketsThursday, 30 April 2026·India
Asia ethylene declines continue in Northeast Asia while Southeast Asia stabilizes after correction
Ethylene markets across Asia showed mixed trends this week, with Northeast Asia extending its downward movement for a third consecutive week, while Southeast Asia found stability after recent declines. Weak demand from downstream sectors continued to outweigh tight supply conditions, keeping buying sentiment cautious.
Market participants are closely tracking geopolitical developments, particularly around the US-Iran situation, as these factors continue to influence crude oil, naphtha flows, and shipping conditions. However, current spot activity is largely driven by weak margins in derivative markets and restrained purchasing behavior.
Northeast Asia sees deeper correction
In Northeast Asia, ethylene prices dropped by another $40/ton this week, bringing the total decline over the past three weeks to $150/ton. This correction has also shifted the regional pricing balance, with Northeast Asia now trading at a $60/ton discount compared to Southeast Asia.
The recent decline follows a sharp rally earlier this year, when prices surged by over 100% to reach around $1500/ton, the highest level in nearly a decade. Since then, weaker demand from downstream sectors such as polyethylene (PE), styrene monomer (SM), and monoethylene glycol (MEG) has reduced buying interest significantly.
Deals for early May shipments were reported in the range of $1340–1360/ton CFR South Korea, with some purchases heard near $1350/ton. Meanwhile, domestic prices in China also softened, with producers lowering list prices and spot levels declining further.
Despite the drop in prices, supply constraints have prevented a sharper fall. Cracker operating rates across the region remain reduced due to feedstock shortages, especially naphtha, as disruptions in the Middle East continue to limit availability.
Key price snapshot (Ethylene)
CFR China: $1350/ton (▼ $40)
Bids: $1320–1330
Offers: $1430–1500
CFR Southeast Asia: $1410/ton (stable)
Bids: $1350–1370
Offers: $1450–1500
Production cuts support market balance
Across Northeast Asia, several producers have maintained reduced operating rates to manage supply:
Multiple crackers in South Korea are running between 55% to 80% capacity
Japanese and Taiwanese plants are undergoing maintenance, further tightening supply
These reductions are largely linked to ongoing feedstock constraints and high input costs.
Southeast Asia stabilizes after earlier fall
In Southeast Asia, ethylene prices held steady at around $1410/ton after declining over the previous two weeks. The region has shown relative stability due to tighter supply and slightly improved market sentiment.
Supply in Southeast Asia remains constrained due to ongoing plant shutdowns, maintenance activities, and reduced operating rates across several countries. This has helped prevent further price declines despite weak downstream demand.
Market sentiment has also received some support from recent developments affecting crude supply chains, which could keep feedstock costs elevated and limit further downside in ethylene prices.
Market outlook remains uncertain
Looking ahead, the market is expected to remain cautious. Any improvement in geopolitical conditions could ease feedstock supply and stabilize production, but recovery is likely to be gradual.
Weak demand continues to be a key concern, although a stable global economic environment could eventually support a rebound. For now, the balance between tight supply and soft demand will continue to shape price movements across the region.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
Market participants are closely tracking geopolitical developments, particularly around the US-Iran situation, as these factors continue to influence crude oil, naphtha flows, and shipping conditions. However, current spot activity is largely driven by weak margins in derivative markets and restrained purchasing behavior.
Northeast Asia sees deeper correction
In Northeast Asia, ethylene prices dropped by another $40/ton this week, bringing the total decline over the past three weeks to $150/ton. This correction has also shifted the regional pricing balance, with Northeast Asia now trading at a $60/ton discount compared to Southeast Asia.
The recent decline follows a sharp rally earlier this year, when prices surged by over 100% to reach around $1500/ton, the highest level in nearly a decade. Since then, weaker demand from downstream sectors such as polyethylene (PE), styrene monomer (SM), and monoethylene glycol (MEG) has reduced buying interest significantly.
Deals for early May shipments were reported in the range of $1340–1360/ton CFR South Korea, with some purchases heard near $1350/ton. Meanwhile, domestic prices in China also softened, with producers lowering list prices and spot levels declining further.
Despite the drop in prices, supply constraints have prevented a sharper fall. Cracker operating rates across the region remain reduced due to feedstock shortages, especially naphtha, as disruptions in the Middle East continue to limit availability.
Key price snapshot (Ethylene)
CFR China: $1350/ton (▼ $40)
Bids: $1320–1330
Offers: $1430–1500
CFR Southeast Asia: $1410/ton (stable)
Bids: $1350–1370
Offers: $1450–1500
Production cuts support market balance
Across Northeast Asia, several producers have maintained reduced operating rates to manage supply:
Multiple crackers in South Korea are running between 55% to 80% capacity
Japanese and Taiwanese plants are undergoing maintenance, further tightening supply
These reductions are largely linked to ongoing feedstock constraints and high input costs.
Southeast Asia stabilizes after earlier fall
In Southeast Asia, ethylene prices held steady at around $1410/ton after declining over the previous two weeks. The region has shown relative stability due to tighter supply and slightly improved market sentiment.
Supply in Southeast Asia remains constrained due to ongoing plant shutdowns, maintenance activities, and reduced operating rates across several countries. This has helped prevent further price declines despite weak downstream demand.
Market sentiment has also received some support from recent developments affecting crude supply chains, which could keep feedstock costs elevated and limit further downside in ethylene prices.
Market outlook remains uncertain
Looking ahead, the market is expected to remain cautious. Any improvement in geopolitical conditions could ease feedstock supply and stabilize production, but recovery is likely to be gradual.
Weak demand continues to be a key concern, although a stable global economic environment could eventually support a rebound. For now, the balance between tight supply and soft demand will continue to shape price movements across the region.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.