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Last week, ethylene prices dropped in parts of Asia while they remained steady in the Southeast Asian region, as per Polymerupdate.
An industry source in Asia, requesting to remain unidentified, informed a Polymerupdate team member, "Ethylene prices in Asia declined because of low-priced November-arrival US cargo offers at CFR Northeast Asia, weak demand from polyethylene and styrene sectors, and sufficient regional supply. US manufacturers, taking advantage of inexpensive ethane feedstock, provided competitively priced shipments that compelled local sellers to adjust their expectations downward. Simultaneously, numerous downstream facilities in Asia are operating at lower capacities or are in maintenance because of weak margins and high stock levels, resulting in decreased ethylene demand. Although offers were made, no firm agreements were reached, as buyers stayed wary, anticipating additional price drops in the unstable crude and naphtha markets.'
The source added, ?The decline was also fuelled by a rise in local cargo supply in East China, as domestic manufacturers supplied more products to the market. This contributed to the total regional surplus and further impacted sentiment, intensifying the downward strain on spot prices. Nonetheless, the effect on import shipments was restricted, according to some participants, since the availability of regional material arriving in October stayed constant. This maintained a partial support for import talks, as sellers kept their offers stable while expecting tighter balances in the future."
On Friday, FOB Korea ethylene prices were assessed at the USD 805-815/mt levels while FOB Japan ethylene prices were assessed at the USD 800-810/mt levels, both declined by USD (-5/mt) week on week.
CFR North East Asia ethylene prices were assessed at the USD 840-850/mt levels, a week on week decrease of USD (-5/mt).
The availability of ethylene in Northeast Asia has generally increased, mainly due to fewer regional cracker shutdowns and a rise in deep sea cargo offers, which enhanced the supply of imported ethylene. In South Korea, cracker utilization rates remained mostly consistent week-over-week, reflecting steady domestic production levels. Nonetheless, spot ethylene supplies stayed limited because of imminent cracker turnarounds planned for October, which are anticipated to briefly lower production and restrict short-term supply. In general, although the region exhibited indications of rising supply and stability, South Korea's market stayed wary with restricted spot availability prior to maintenance work, indicating a balanced but possibly tight market situation in the short term.
Meanwhile, CFR South East Asia ethylene prices were assessed flat at the USD 835-845/mt levels.
In Southeast Asia, ethylene prices stayed steady even though supply was still relatively constrained. The market's strain was mainly caused by the continued force majeure at a cracker in Singapore, which restricted supply, along with the reduced operating rates at a cracker in Malaysia, further diminishing regional availability. In spite of these supply limitations, prices remained steady, likely indicating balanced demand conditions or market anticipations of future stability. In general, the region saw a consistent pricing situation due to persistent supply limitations
In plant news, PTT Global Chemical (PTTGC) is likely to shut down its cracker in December 2025. However, the exact date and duration of the shutdown remain unconfirmed, as no official confirmation has been obtained. Located in Map Ta Phut, Thailand, the cracker has an ethylene production capacity of 500,000 mt/year.
In other plant news, Korea Petrochemical Industry Co (KPIC) is likely to shut down its cracker in the fourth quarter of 2026. However, the exact date and duration of the shutdown remain unconfirmed, as an authorized source was unavailable for comment. Located in Onsan, South Korea, the cracker has an ethylene production capacity of 900,000 mt/year.
mrchub.com