Asian Ethylene Slips Further as Weaker Feedstock Costs Weigh on Market

Asian ethylene prices extended their decline this week as falling crude oil and naphtha values continued to pressure sentiment across the region. Improved prospects for diplomatic progress between the US and Iran eased concerns over Middle East supply disruptions, dragging energy markets lower and reducing feedstock costs for olefin producers. While lower raw material prices have softened production costs, uncertainty surrounding future oil movements has kept both buyers and sellers cautious.

Market participants remain focused on developments in the US-Iran negotiations, as any change in geopolitical conditions could quickly influence oil, naphtha, and downstream olefin prices. Although buyers briefly showed stronger interest late last week, activity slowed again after energy markets weakened further, with many preferring to delay purchases until pricing becomes clearer.

Asian Ethylene Price Update

CFR China
Current Price: $980/ton
Weekly Change: ▼ $20/ton
Buyer Ideas: $930–940/ton
Offer Range: $1,080–1,100/ton

CFR Southeast Asia
Current Price: $920/ton
Weekly Change: ▼ $20/ton
Buyer Ideas: $880–900/ton
Offer Range: $1,030–1,050/ton

In Northeast Asia, ethylene prices weakened as naphtha values dropped sharply after their recent rally. Market discussions remained limited, with many producers avoiding aggressive offers while evaluating whether lower feedstock costs would persist. Buyers largely focused on contract discussions instead of spot purchases, as frequent fluctuations in crude and naphtha continued to create pricing uncertainty. Although some opportunistic buying emerged for early August cargoes, overall trading remained restrained.

Chinese domestic ethylene prices stayed relatively stable despite softer import sentiment. Producers across Japan, South Korea, and Taiwan also maintained cautious operating strategies, with several crackers continuing to run at reduced rates due to feedstock economics and maintenance schedules.

Regional Plant Updates

ENEOS – Kawasaki, Japan
Facility: Naphtha Cracker
Capacity: 540,000 TPA Ethylene / 300,000 TPA Propylene
Status: Restarted at the end of June after a shutdown in March.

ENEOS – Kashima, Japan
Facility: RFCC Unit
Capacity: 90,000 TPA Propylene
Status: Remains offline; restart timeline not confirmed.

Mitsubishi Chemical – Kashima, Japan
Facility: Naphtha Cracker
Capacity: 539,000 TPA Ethylene / 270,000 TPA Propylene
Status: Restarted in mid-July following maintenance.

Mitsui Chemicals – Chiba, Japan
Facility: Naphtha Cracker
Capacity: 612,000 TPA Ethylene / 316,000 TPA Propylene
Status: Under scheduled maintenance after June shutdown.

ENEOS – Mizushima, Japan
Facility: RFCC Unit
Capacity: 93,000 TPA Propylene
Status: Planned maintenance scheduled from mid-September.

Idemitsu Kosan – Tokuyama, Japan
Facility: RFCC Unit
Capacity: 110,000 TPA Propylene
Status: Shutdown planned between September and November.

Across Southeast Asia, ethylene values followed the weaker trend seen in Northeast Asia. Despite softer pricing, supply remained relatively tight as several major crackers continued operating below capacity or remained under maintenance. Producers generally preferred formula-based pricing over fixed-price offers, while buyers stayed cautious and limited purchases to immediate requirements.

Market participants believe regional availability will remain constrained through August because of ongoing maintenance activities and reduced operating rates. However, the direction of crude oil and feedstock prices, along with developments in the Middle East, will continue to be the key factors influencing ethylene pricing in the coming weeks.

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