Ethylene prices journey southward in Asia

Ethylene prices down adjusted in the Asian region last week, as per Polymerupdate.

An industry source in Asia, requesting to remain unidentified, informed a Polymerupdate team member, " The Asian ethylene markets faced a downturn as a result of rising supply and decreasing demand for derivatives. The oversupply issue was especially evident in East China, where increased production levels among local manufacturers resulted in an influx of ethylene availability. This excess of product put downward pressure on prices, leading sellers to be more open to lower price negotiations to clear their stock. Moreover, the muted demand for downstream products added to the negative sentiment, since buyers took a careful stance due to worries about oversupply and declining prices. In general, these elements led to a market situation marked by higher supply and reduced demand, causing an ongoing decline in ethylene prices throughout the Asian region.

The source added, Various sources suggested that low demand for derivatives is anticipated to apply further downward pressure on the ethylene markets. When downstream buyers grow wary of their purchases, they tend to steer clear of buying more expensive shipments to maintain their production margins. This hesitation to buy at high prices further weakens overall demand for ethylene, exacerbating the current price drops. The mix of abundant supply and low purchasing interest highlights a difficult market landscape, where producers may encounter greater challenges in sustaining profitable prices due to buyers' cautious approach in managing their expenses efficiently.

On Friday, FOB Korea ethylene prices were assessed at the USD 770-780/mt levels while FOB Japan ethylene prices were assessed at the USD 765-775/mt levels, both lowered by USD (-35/mt) from the previous week.

CFR North East Asia ethylene prices were assessed at the USD 805-815/mt levels, a week on week decline of USD (-35/mt).

In China, the increasing reliability of external ethylene facilities along with plentiful domestic availability led to a heightened bearish sentiment throughout the market. With supply levels staying consistent and foreseeable, the urgency among buyers lessened, resulting in a drop in prices. Moreover, with the approaching National Day holiday, numerous companies aimed to ensure they sustained sufficient inventory levels throughout the holiday season. To accomplish this, they provided discounts and promotional pricing to decrease surplus inventory and encourage sales. This heightened discounting activity exerted additional downward pressure on prices, especially in China, leading to a decline in the main domestic ethylene prices.

With October ocean shipments arriving consistently and negotiated prices in the domestic market staying low, competition among carriers in the North Asian shipping sector is intensifying. To guarantee prompt and seamless deliveries, import suppliers are consistently providing ongoing discounts during discussions. This heightened price competition indicates the necessity to ensure shipping capacity due to plentiful vessel availability and a wary market atmosphere, which ultimately adds further downward pressure on freight rates and shipping expenses in the region.

CFR South East Asia ethylene prices were assessed at the USD 805-815/mt levels, a decrease of USD (-30/mt) from the previous week.

In plant news, Yulong Petrochemical has started its new No.2 cracker in mid-September 2025 and is gradually ramping up its operating rates. An official confirmation from the concerned authority has not yet been issued. Located in Shandong, China, the No.2 cracker has an ethylene production capacity of 1.5 million 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.

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Water treatment company Kurita America Inc. (Minneapolis, MN) and adsorbent technologies firm Cyclopure have partnered on a per- and polyfluoroalkyl substances (PFAS)-removal solution employing regenerable material, as per Chemweek.

The partnership leverages Cyclopure’s DEXSORB® technology and Kurita’s expertise in water treatment system design and fabrication.

Studies have shown that PFAS, which are often referred to as "forever chemicals” because of their biopersistence, are harmful to the environment and human health, leading to potential health risks such as cancer, liver damage, and immune system disruption. Legally enforceable limits on two PFAS in drinking water are set to come into effect in 2031.

Cyclopure’s DEXSORB is made from renewable beta-cyclodextrins with a hydrophobic cavity that selectively adsorbs PFAS compounds. PFAS waste can be concentrated up to 500,000x, making it easier to destroy using existing technologies. The media can be regenerated through a solution-based desorption process under ambient conditions.

Kurita is engaged in filtration equipment design and fabrication of a new collaborative PFAS regeneration facility in Michigan, which will serve as a cornerstone for delivering scalable and sustainable PFAS treatment.

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Brenntag SE, the global market leader in chemicals and ingredients distribution, has announced the appointment of Bjorn Andersen as COO, effective “no later than” April 1, 2026, as per Chemweek.

Andersen will have direct responsibility for supply chains; health, safety, environment and security; operational excellence; and capital expenditure. He will report directly to Brenntag CEO Jens Birgersson.

Andersen will join Brenntag from Rockwool Group (Copenhagen), where he is currently senior vice president/group operations and technology. He earlier served as COO at Rockwool, a maker of mineral wool products.

Andersen’s appointment follows announcements of the departure of the heads of Brenntag’s two divisions: Brenntag Essentials and Brenntag Specialties.

The former CEO of Brenntag Essentials, Ewout van Jarwaarde, left the company in early September. Brenntag announced previously that the CEO of Brenntag Specialties, Michael Friede, would leave the company to join Symrise AG.

Birgersson became Brenntag CEO on Sept. 1, succeeding Christian Kohlpaintner.

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Occidental Petroleum Corp. (Oxy; Houston) is attempting to sell its chemicals business, OxyChem, for at least $10 billion, according to Chemweek.

Unnamed sources “familiar with the matter” expect a deal to be announced within weeks.

Shares in Oxy opened Monday, Sept. 29, at $48.77, up from a close of $47.46 on Sept. 26.

Oxy, which finished 2024 with about $24 billion in debt, has made reducing the figure to $15 billion a primary objective. During the first half of 2025, the company announced divestitures totaling nearly $4 billion.

“Through our high-grading efforts, we have strengthened our portfolio, divesting assets with limited near-term opportunities and growing our inventory of competitive high-margin opportunities,” Vicki Hollub, Oxy’s president and CEO, said during the company’s second-quarter earnings call on Aug. 7.

OxyChem is a producer of chlor-alkali, vinyls and polyvinyl chloride. Almost all of its production assets are located in North America. The company generated second-quarter net income of $160 million on sales of $1.3 billion.

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BASF has decided to exit the hydrosulfites business and will close the respective production facility in Ludwigshafen. As a result, the company will phase out the supply of Hydrosulfite F as well as HydroBlue® 90, HydroBlue® 92, Hydrosulfite Evo, Adlite, and Blankit, as per Hydrocarbonprocessing.

This decision is part of the ongoing strategic review of the production setup at the Ludwigshafen site and reflects the company’s commitment to focus on business activities with long-term value creation potential. The company will support the approximately 65 employees currently working in the hydrosulfites business in finding new roles within the BASF Group.

“Focus is a cornerstone of BASF’s Winning Ways strategy,” said Dr. Ramkumar Dhruva, President of BASF’s Monomers division. “By concentrating on profitability and long-term value creation, we are safeguarding the competitiveness of our business in a challenging economic environment. As we phase out our activities in the hydrosulfites business, we will work closely with our employees and customers to ensure a responsible transition.”

Hydrosulfites are used as reducing agents in the textile industry during the dyeing process and as bleaching additives in pulp and paper applications.

We remind, BASF’s Intermediates division has announced that its standard grade amine portfolio will soon be produced by 100% renewable electricity credited to the Geismar, Louisiana Verbund site.

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