Asia Ethylene: Oil & Naphtha Drop Pulls Ethylene Prices Lower

Asian ethylene prices declined this week, giving up much of the recent gains after a sharp fall in crude oil and naphtha. Easing tensions between the US and Iran reduced concerns over Middle East supply disruptions, triggering a correction in energy markets and weakening sentiment across the olefins sector.

The sudden reversal made it difficult for buyers and sellers to agree on spot prices. As a result, many market participants stepped back from fresh deals, waiting for more stability in crude and feedstock markets before making new commitments.

📊 Ethylene Price Snapshot

CFR China
Current Price: $990/ton
Weekly Change: ▼ $10

CFR Southeast Asia
Current Price: $930/ton
Weekly Change: ▼ $30

Northeast Asia Market Turns Cautious

After rising nearly $180/ton over the past two weeks, Northeast Asian ethylene prices lost momentum as crude oil and naphtha corrected sharply. Buyers shifted their focus toward term contracts and floating-price formulas instead of fixed-price purchases due to uncertainty over future feedstock costs.

Asian naphtha also dropped significantly during the week, putting additional pressure on ethylene pricing. Most buyers avoided aggressive bidding, while producers remained cautious in offering spot cargoes.

China's domestic market remained relatively active, with Sinopec raising its local ethylene list price and East China spot prices also moving higher. However, import activity stayed limited amid volatile international markets.

Regional Supply Still Offers Support

Despite weaker prices, supply fundamentals across Northeast Asia remain relatively tight. South Korean crackers continue operating at reduced rates, while Taiwanese producers are maintaining lower operating levels because of maintenance schedules and production adjustments.

Market participants believe lower naphtha prices may reduce production costs, but it is still too early to determine whether the correction will be sustained.

Southeast Asia Also Follows the Downtrend

Ethylene prices in Southeast Asia also declined after crude oil weakened. Buyers largely paused negotiations, while producers held back fresh spot offers until energy markets become more stable.

Most market participants preferred formula-based pricing for August cargoes rather than fixed-price transactions. At the same time, multiple cracker maintenance shutdowns and reduced operating rates across the region are expected to tighten supply during August, which could help limit further price declines.

🏭 Major Plant Updates

PRefChem – Malaysia (Naphtha Cracker)
Capacity: 1.29 Million TPA
Status: Restarted in June, currently operating at reduced rates.

PRefChem – Malaysia (RFCC Units)
Capacity: 70,000 bbl/day × 2
Status: Shut due to technical issues.

Aster Chemicals & Energy – Singapore
Capacity: 1.15 Million TPA
Status: Running at 50–60%; maintenance scheduled in August.

PT Lotte Chemical Indonesia – Indonesia
Capacity: 1.0 Million TPA
Status: Operating rate reduced to 50–55%.

PT Chandra Asri Pacific – Indonesia
Capacity: 0.90 Million TPA
Status: Running at 60–65% after force majeure was lifted.

ExxonMobil – Singapore
Capacity: 0.90 Million TPA
Status: Older cracker permanently shut.

Long Son Petrochemical – Vietnam
Capacity: 1.0 Million TPA
Status: Remains offline due to feedstock constraints.

Rayong Olefins – Thailand
Capacity: 0.90 Million TPA
Status: Still shut; tentative restart expected in September.

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