CrudeThursday, 18 June 2026·India
Asia Ethylene: Crude Selloff Pushes CFR China and SEA Prices Below $900/Ton
Asian ethylene prices extended their decline for a tenth consecutive week as a sharp drop in crude oil values triggered fresh selling across the region. The recent US-Iran peace agreement eased concerns over supply disruptions and improved expectations for energy flows through the Strait of Hormuz, sending crude futures lower and adding pressure to petrochemical markets.
Market sentiment turned increasingly bearish as weakness spread across olefins and downstream derivatives. Traders continued to lower offers in an effort to move prompt cargoes, while buyers largely stayed on the sidelines expecting further declines. The price gap between Northeast Asia and Southeast Asia narrowed significantly, with Southeast Asian values now trading only slightly above China levels.
Ethylene Price Snapshot
CFR China: $880/ton (▼ $40/ton)
Bid Range: $870-890/ton
Offer Range: $950-1000/ton
CFR Southeast Asia: $895/ton (▼ $45/ton)
Bid Range: $850-880/ton
Offer Range: $950-1000/ton
Southeast Asian Prices Continue to Slide
Southeast Asian ethylene prices recorded a tenth straight weekly decline as traders aggressively marketed prompt cargoes to reduce inventories and lower monthly contract settlement averages. Spot values have now fallen by more than 40% from the highs seen in early April.
Market participants reported that several July cargoes were traded at significantly lower levels, reflecting growing pressure on sellers. Buyers remained cautious and limited purchases to immediate needs as expectations for additional declines persisted.
The supply outlook also became more comfortable following the restart of Malaysia's PRefChem facilities. The producer has resumed operations at its Pengerang cracker and RFCC units and has already begun offering fresh cargoes into the market. Additional supply is expected when Petronas restarts its Kertih cracker later this month.
Despite these developments, some regional capacity remains offline, helping to partially offset the increase in available material.
Northeast Asia Weakens Despite Tighter Supply
Ethylene prices in Northeast Asia and China also moved lower during the week, although supply conditions remain relatively tighter than in Southeast Asia due to ongoing maintenance shutdowns and operating rate reductions at several Chinese crackers.
However, weaker crude oil values and poor downstream demand outweighed any support from tighter supply. Demand from polyethylene, PVC, styrene monomer, MEG and ethylene oxide sectors remained sluggish, limiting buying interest.
Market participants reported several transactions concluded in the high-$800s/ton range, while domestic Chinese prices also softened following another reduction in Sinopec's pricing.
Although domestic availability in China has tightened due to maintenance outages, traders noted that falling crude oil and naphtha prices have become the dominant drivers of market sentiment.
Plant Updates
PRefChem – Malaysia
Capacity: 1.29 million tons/year ethylene
Status: Pengerang cracker and RFCC units restarted in June.
Petronas No. 2 – Malaysia
Capacity: 600,000 tons/year ethylene
Status: Expected to restart by end-June.
Aster Chemicals & Energy – Singapore
Capacity: 1.15 million tons/year ethylene
Status: Operating at 50-60% rates.
Rayong Olefins – Thailand
Capacity: 900,000 tons/year ethylene
Status: Remains offline with no confirmed restart date.
Long Son Petrochemical – Vietnam
Capacity: 1.0 million tons/year ethylene
Status: Continues to remain shut.
Sinopec SK Wuhan – China
Capacity: 1.1 million tons/year ethylene
Status: Under scheduled maintenance.
Wanhua Chemical – China
Capacity: 1.2 million tons/year ethylene
Status: Offline due to technical issues.
FREP – China
Capacity: 1.0 million tons/year ethylene
Status: Operating at reduced rates.
Zhejiang Petrochemical – China
Capacity: 1.4 million tons/year ethylene
Status: Running at reduced operating rates.
Sinopec Hainan – China
Capacity: 1.0 million tons/year ethylene
Status: Under maintenance.
PetroChina Guangxi – China
Capacity: 1.2 million tons/year ethylene
Status: Operating at lower rates.
Jiangsu Sailboat – China
Capacity: 370,000 tons/year ethylene
Status: Offline due to feedstock shortages.
Ningbo Huatai Shengfu – China
Capacity: 600,000 tons/year ethylene
Status: Operating at around 70% rates.
Outlook
Market participants expect pressure to persist through the remainder of June as crude oil, naphtha and petrochemical markets continue to weaken. While lower feedstock costs have reduced production expenses, ethylene prices are falling at a faster pace, squeezing margins across the region.
With additional supply expected from recently restarted facilities and buyers maintaining a wait-and-see approach, the market is likely to remain under downward pressure in the near term.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
Market sentiment turned increasingly bearish as weakness spread across olefins and downstream derivatives. Traders continued to lower offers in an effort to move prompt cargoes, while buyers largely stayed on the sidelines expecting further declines. The price gap between Northeast Asia and Southeast Asia narrowed significantly, with Southeast Asian values now trading only slightly above China levels.
Ethylene Price Snapshot
CFR China: $880/ton (▼ $40/ton)
Bid Range: $870-890/ton
Offer Range: $950-1000/ton
CFR Southeast Asia: $895/ton (▼ $45/ton)
Bid Range: $850-880/ton
Offer Range: $950-1000/ton
Southeast Asian Prices Continue to Slide
Southeast Asian ethylene prices recorded a tenth straight weekly decline as traders aggressively marketed prompt cargoes to reduce inventories and lower monthly contract settlement averages. Spot values have now fallen by more than 40% from the highs seen in early April.
Market participants reported that several July cargoes were traded at significantly lower levels, reflecting growing pressure on sellers. Buyers remained cautious and limited purchases to immediate needs as expectations for additional declines persisted.
The supply outlook also became more comfortable following the restart of Malaysia's PRefChem facilities. The producer has resumed operations at its Pengerang cracker and RFCC units and has already begun offering fresh cargoes into the market. Additional supply is expected when Petronas restarts its Kertih cracker later this month.
Despite these developments, some regional capacity remains offline, helping to partially offset the increase in available material.
Northeast Asia Weakens Despite Tighter Supply
Ethylene prices in Northeast Asia and China also moved lower during the week, although supply conditions remain relatively tighter than in Southeast Asia due to ongoing maintenance shutdowns and operating rate reductions at several Chinese crackers.
However, weaker crude oil values and poor downstream demand outweighed any support from tighter supply. Demand from polyethylene, PVC, styrene monomer, MEG and ethylene oxide sectors remained sluggish, limiting buying interest.
Market participants reported several transactions concluded in the high-$800s/ton range, while domestic Chinese prices also softened following another reduction in Sinopec's pricing.
Although domestic availability in China has tightened due to maintenance outages, traders noted that falling crude oil and naphtha prices have become the dominant drivers of market sentiment.
Plant Updates
PRefChem – Malaysia
Capacity: 1.29 million tons/year ethylene
Status: Pengerang cracker and RFCC units restarted in June.
Petronas No. 2 – Malaysia
Capacity: 600,000 tons/year ethylene
Status: Expected to restart by end-June.
Aster Chemicals & Energy – Singapore
Capacity: 1.15 million tons/year ethylene
Status: Operating at 50-60% rates.
Rayong Olefins – Thailand
Capacity: 900,000 tons/year ethylene
Status: Remains offline with no confirmed restart date.
Long Son Petrochemical – Vietnam
Capacity: 1.0 million tons/year ethylene
Status: Continues to remain shut.
Sinopec SK Wuhan – China
Capacity: 1.1 million tons/year ethylene
Status: Under scheduled maintenance.
Wanhua Chemical – China
Capacity: 1.2 million tons/year ethylene
Status: Offline due to technical issues.
FREP – China
Capacity: 1.0 million tons/year ethylene
Status: Operating at reduced rates.
Zhejiang Petrochemical – China
Capacity: 1.4 million tons/year ethylene
Status: Running at reduced operating rates.
Sinopec Hainan – China
Capacity: 1.0 million tons/year ethylene
Status: Under maintenance.
PetroChina Guangxi – China
Capacity: 1.2 million tons/year ethylene
Status: Operating at lower rates.
Jiangsu Sailboat – China
Capacity: 370,000 tons/year ethylene
Status: Offline due to feedstock shortages.
Ningbo Huatai Shengfu – China
Capacity: 600,000 tons/year ethylene
Status: Operating at around 70% rates.
Outlook
Market participants expect pressure to persist through the remainder of June as crude oil, naphtha and petrochemical markets continue to weaken. While lower feedstock costs have reduced production expenses, ethylene prices are falling at a faster pace, squeezing margins across the region.
With additional supply expected from recently restarted facilities and buyers maintaining a wait-and-see approach, the market is likely to remain under downward pressure in the near term.
Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.
