Ethylene prices rise in parts of Asia

Last week, ethylene prices gained in North East Asia, Korea and China while quoting stable in the Southeast Asian region, as per Chemweek.

An industry source in Asia, requesting to remain unidentified, informed a Polymerupdate team member, "Ethylene prices increased as market players noted constrained supply conditions. The increase was mainly due to the restricted supply of September shipments in Northeast Asia, along with continued plant maintenance activities in China that reduced regional production further. These elements restricted supply balances and helped boost prices, despite demand indicators staying stable. At the same time, prices in Southeast Asia remained steady as limited trading activity and careful purchasing maintained a range-bound market. In general, the variation shows supply-driven robust performance in Northeast Asia compared to subdued sentiment in Southeast Asia".

On Friday, FOB Korea ethylene prices were assessed at the USD 785-795/mt levels while FOB Japan ethylene prices were assessed at the USD 780-790/mt levels, both week on week higher by USD (+5/mt). CFR North East Asia ethylene prices were assessed at the USD 825-835/mt levels, up USD (+5/mt) from the previous week.

The source added, "Prices in Northeast Asia are anticipated to increase further in the upcoming months, as planned plant maintenance activities in South Korea in the fourth quarter is expected to constrain supply even more. This strengthens the anticipation of an optimistic perspective in the region. On August 20, it was announced that 10 petrochemical firms from South Korea have consented to reorganize their operational structure, which involves a considerable cutback in naphtha-cracking capacity, as stated by government authorities. This development may restrict feedstock availability for ethylene production even more, increasing upward pressure on regional prices".

The firms will jointly decrease their yearly naphtha-cracking capacity by 2.73.7 million metric tons. Market participants observed that although this action is anticipated to maintain ethylene prices steady in the short term, it is improbable to cause a significant price surge considering the current demand perspective. At the same time, the downstream effect on the Chinese polyethylene (PE) market is anticipated to be minimal, since South Korean PE imports to the nation are primarily restricted to specialized and premium grades. Consequently, the reorganization of South Korean naphtha-cracking activities is expected to have minimal impact on the overall supply-demand equilibrium for PE in China.

Meanwhile, CFR South East Asia ethylene prices were assessed steady at the USD 815-825/mt levels.

In plant news, Chiba Chemicals Chemical Ethylene Corp has restarted its cracker last weekend following a turnaround. Run rates at the cracker, which was shut for maintenance in mid-June 2025, have been normalized. Located in Chiba, Japan, the cracker has an ethylene production capacity of 612,000 mt/year and propylene production capacity of 330,000 mt/year.

In other plant news, Long Son Petrochemicals cracker has attained on-spec production following the resumption of operations around August 18, 2025. The cracker had been shut down in mid-October 2024 due to concerns over shrinking production margins and weakened demand. Located in Long Son, Vietnam, the cracker has an ethylene production capacity of 950,000 mt/year.

In another plant news, Formosa Petrochemical Corp (FPCC) will continue to keep its No.2 cracker off stream till end August 2025. The cracker was shut for maintenance in Q3 2025. Located in Mailiao, Taiwan, the No.2 cracker has an ethylene production capacity of 1.035 million mt/year.
mrchub.com

Axplora Group GmbH (Raubling, Germany), a producer of active pharmaceutical ingredients (APIs), has announced an investment of EUR6.5 million to expand its production capacity at its Visakhapatnam facility in India, as per Chemweek.

This decision comes on the heels of successful routine inspections by the US Food and Drug Administration (USFDA) conducted in 2025 at both of Axplora’s Indian manufacturing sites, including Visakhapatnam and Chennai, which are integral to the company’s PharmaZell Business Unit.

In a statement, Axplora emphasized that these milestones reflect the company’s long-term commitment to India as a key component of its global operations. “Combined, these milestones underscore Axplora’s long-term commitment to India as a strategic pillar of its global operations and its dedication to maintaining world-class quality and compliance standards,” the company said.

The expansion project at the Visakhapatnam site is designed to enhance Axplora’s capacity to meet the increasing global demand for high-value pharmaceutical ingredients. Additionally, the investment aligns with the company’s sustainability objectives by fostering efficient, vertically integrated production processes at a single location.

Axplora currently operates nine API manufacturing sites across Europe and India, showcasing its robust presence in the pharmaceutical industry.

mrchub.com

India’s department of fertilizers has highlighted a transformation in the country’s domestic fertilizer production and its global partnerships, which collectively bolster India’s food security, as per Chemweek.

Urea production has surged from 22.7 million metric tons (MMt) in 2013–14 to 30.6 MMt in 2024–25, reflecting a growth of 35%. Additionally, the combined production of diammonium phosphate (DAP) and NPK fertilizers has risen from 11 MMt to 15.8 MMt during the same period, marking a 44% increase.

However, the current geopolitical landscape has posed challenges to fertilizer supplies in India. The ongoing crisis in the Red Sea has disrupted supply chains, necessitating the rerouting of shipments via the Cape of Good Hope — an additional journey of over 6,500 km. This rerouting has notably extended voyage times, particularly for DAP. Furthermore, conflicts such as the Russia-Ukraine war and the Israel-Iran tensions have driven up fertilizer prices in the international market, according to department of fertilizers.

Despite these global hurdles, Indian government has demonstrated resilience and strategic foresight, it added. Proactive diplomatic engagements, logistical interventions, and long-term agreements have been pivotal in ensuring that farmers do not face shortages.

A significant arrangement has been established between a consortium of Indian fertilizer companies and Morocco for the supply of DAP and triple superphosphate (TSP). In July 2025, a long-term agreement (LTA) was signed with Saudi Arabia, securing an annual supply of 3.1 MMt of DAP for five years starting from the 2025–26 season.

These overseas collaborations are aimed at securing India’s long-term fertilizer needs and ensuring timely supplies to various states. As a result of these efforts, the availability of fertilizers has remained stable during the ongoing Kharif 2025 season, it added.

Against a pro-rata requirement of 14.3 MMt of urea, the total availability stands at 18.3 MMt, with sales reaching 15.5 MMt. Similarly, DAP availability has reached 4.9 MMt against a requirement of 4.5 MMt, with sales at 3.3 MMt. For NPK fertilizers, availability has been ensured at 9.7 MMt against a pro-rata requirement of 5.8 MMt, with sales recorded at 6.4 MMt.

Notably, as of Aug. 20, 2025, urea sales have increased by over 1.3 MMt compared with the same period last year. Despite this rise in sales, the department of fertilizers said it has maintained uninterrupted urea availability across the country by maximizing domestic production and procurement through global tenders.

mrchub.com

The State Oil Company of the Azerbaijan Republic (SOCAR) plans to launch geological exploration work at the investment blocks of the Ustyurt oil and gas region of Uzbekistan in the first quarter of 2026, JSC Uzbekneftegaz Management Board Chairman Bakhodirjon Sidikov said, as per Interfax.

"According to the approved roadmap, geological exploration work at the investment blocks of the Ustyurt region is planned for launch in the first quarter of 2026. This will be possible after completing the organizational and preparatory stage and obtaining all the necessary permits," Sidikov said in an interview with Azerbaijan's Report agency.

Sidikov clarified that the companies currently have equal stakes in the project. SOCAR will be the operator at the geological exploration stage.

"Meantime, the participation structure envisages a flexible adjustment mechanism that could be applied depending on the stage of project implementation. At the first stage, Uzbekneftegaz provides institutional and technical support, namely, assists in obtaining permits, transfers geological and geophysical information, and interacts with government agencies," Sidikov said.

Sidikov also said that investors are financing the initial stage with an equal distribution of obligations between the parties. "If necessary, it is possible to attract external financing. The government, in turn, creates favorable tax and legal conditions, including through a special tax regime as part of the production sharing agreement (PSA)," he emphasized.

Sidikov also said that the exploration phase is intended for five years under the terms of the PSA. Sidikov added that Uzbekneftegaz maintains a strategic interest in participating in international projects, including projects in Azerbaijan.

"We are open to dialogue and are analyzing various scenarios for potential partnership with SOCAR. Uzbekneftegaz is interested in leading projects in Azerbaijan. We are considering cooperation opportunities both in the investment format and as part of technological exchange and production cooperation," Sidikov said.

The possibilities to cooperate in such areas as digitalizing processes in the oil and gas industry, implementing green technologies, and improving industrial safety are currently under discussion, he said.

On July 24, Uzbekistan's Energy Ministry, SOCAR and Uzbekneftegaz signed a PSA that envisages geological exploration and subsequent production of hydrocarbons at six investment blocks of the Ustyurt oil and gas region, namely, Boyterak, Terengkuduk, Birgori, Haroi, Karakalpok and Kulboy.

According to forecasts, a field with oil reserves of 100 million tonnes and natural gas of 35 billion cubic meters may be found at the Ustyurt blocks. It is assumed that it would be possible to extract 5 million tonnes of oil annually after the launch of the project on the Ustyurt plateau.

In accordance with the terms and conditions of the PSA, there are plans to conduct 3D seismic exploration on at least 1,000 sq. km and, based on the results, launch geological exploration work on one well. If hydrocarbon deposits of industrial significance are discovered, then the parties will launch development and subsequent production. Overall investments in the project are estimated at $2 billion.

mrchub.com

Rashtriya Chemicals and Fertilizers (RCF; Mumbai) posted a 23.3% year-over-year decrease in sales for the fiscal first quarter ended June 30, to 33.7 billion Indian rupees ($385.1 million), as per Chemweek.

Despite the decline in sales, the company recorded an increase in profit, which soared more than fivefold to 541 million rupees, compared with 107.3 million rupees during the same period last year.

The fertilizers segment, which remains a core part of RCF's operations, recorded revenues of 21.4 billion rupees, reflecting a slight increase of 0.1% year over year. However, this segment faced challenges as its operating loss expanded to 400.9 million rupees, up from 373.4 million rupees in the previous year.

In contrast, the industrial chemicals division witnessed a downturn, with operating income declining by 2% year over year to 948.8 million rupees and revenue dropping by 17.3% to 3.8 billion rupees. This segment is known for producing a variety of chemical products, including mono methylamine, dimethylamine, nitric acid, trimethylamine, refrigerant grade ammonia, anhydrous ammonia, ammonium nitrate, ammonium bicarbonate, calcium carbonate, argon, nitrogen and gypsum.

mrchub.com