Ethylene prices rise in Southeast Asia

Last week, ethylene prices climbed in Southeast Asia while quoting stable in other Asian regions.

An industry source in Asia, requesting to remain unidentified, informed a Polymerupdate team member, "The recent increase in ethylene prices in Asia can be mainly linked to rising worries regarding short-term cargo availability, resulting in a climate of supply uncertainty. Market participants expect a further restriction of ethylene supply in certain Asian areas during October. This expectation stems from various scheduled plant turnarounds and current production halts in the region. These operational setbacks are restricting the amount of ethylene on the market, causing purchasers to obtain shipments sooner and at increased prices to guarantee a steady supply. Consequently, the short-term perceived shortage is creating upward price pressure, allowing sellers to maintain gains because of limited supply.”

On Friday, CFR South East Asia ethylene prices were assessed at the USD 835-845/mt levels, a week on week gain of USD (+10/mt).

Meanwhile, FOB Korea ethylene prices were assessed flat at the USD 795-805/mt levels while FOB Japan ethylene prices were assessed steady at the USD 790-800/mt levels.

CFR North East Asia ethylene prices were assessed at the USD 835-845/mt levels, rolled over from the previous week.

The source added, “Market players expect that various ethylene facilities in South Korea will have planned maintenance in the fourth quarter, which is likely to result in a decrease in total production capacity. This maintenance work is expected to lead to a scarcity of US dollar-denominated shipments in Northeast Asia, thereby creating upward pressure on US dollar prices because of reduced supply. The limited supply of these shipments constricts the local market, causing sellers to uphold or even raise their prices to demonstrate the shortage. On the demand side, the recent reopening of the US-Asia arbitrage window has attracted minimal interest from buyers, resulting in just a few inquiries for US shipments.”

Nevertheless, the actual procurement of US ethylene continues to be limited by persistent tariffs and logistical issues, including transportation delays and regulatory obstacles, which restrict the quantity of US-sourced shipments reaching the Asian market. As a result, the majority of downstream purchasers are still focusing on intra-Asian supply options, looking for regional shipments to satisfy their requirements. The inclination toward regional supplies, along with restricted US cargo availability and logistical challenges, maintains the rising price trend in the Asian ethylene market, underscoring a situation where constrained supply and cautious demand interact to bolster high prices.

In plant news, Chandra Asri Petrochemical has postponed the maintenance turnaround at its cracker to January 2026. The shutdown was originally planned for November 2025 and expected to last around 50 days. However, further details of the current turnaround duration remain unconfirmed, as no official statement has been obtained from an authorized company representative. Located in Cilegon, Indonesia, the cracker has an ethylene production capacity of 900,000 mt/year and propylene production capacity of 490,000 mt/year.

In other plant news, Keiyo Ethylene is likely to undertake a planned maintenance turnaround at its cracker in the second half of January 2026. However, the duration of the overhaul remains uncertain, as confirmation from an authorized source has not been obtained. Located in Chiba, Japan, the cracker has an ethylene production capacity of 768,000 mt/year and propylene production capacity of 450,000 mt/year.

In another plant news, PetroChina Jilin Petrochemical has commenced operations at its new cracker in September 2025, following the completion of all necessary formalities. An official statement from the concerned authority is not yet available. Located in Jilin, China, the cracker has an ethylene production capacity of 1.2 million mt/year and propylene production capacity of 587,000 mt/year.