United States
Germany
China
India
Saudi Arabia
JapanAt the beginning of Q1 2025, the market underwent a slight improvement. Prices of Ethylene FOB Busan dropped to USD 848/MT, showing a –1.09% decrease from Q4. The drop was mainly due to slower restocking activity after the year-end surge and reduced buying from some export destinations.
Additionally, production remained stable across South Korean crackers, keeping the supply side well-covered. Despite the dip, the market remained healthy with consistent downstream activity and no major logistical disruptions.Â
According to the PriceWatch, In Q2 2025, Ethylene prices in South Korea averaged USD 760.53 per metric ton at FOB Busan. This reflected a quarterly decline of -10.38% amid persistently weak demand and rising stock levels. In the United States, Ethylene prices averaged USD 434.33 per metric ton FOB Houston, posting a sharp fall of -29.58% from Q1.
The Ethylene price trend remained bearish across both Asia and North America, driven by poor downstream consumption and ample supply. In Northeast Asia, high cracker operating rates led to product oversupply, while downstream sectors such as polyethylene and MEG showed limited buying interest.
Competitive exports from the Middle East and Southeast Asia added further pressure to the regional Ethylene market. In the US, production remained steady, but weak domestic offtake and limited export traction created a supply overhang. Cost support from feedstocks like ethane and naphtha weakened as global crude oil values declined.
The Ethylene price chart showed a consistent downtrend across both markets, with no significant price corrections through the quarter. Storage availability in key ports remained sufficient, allowing producers to continue operations without major disruptions. Buyers remained cautious, and procurement activities were largely need-based.
Throughout Q2, the Ethylene market in both South Korea and the US saw increased seller competition, price undercutting, and minimal movement in contracted volumes.Â
In Q1 2024, the Ethylene market in South Korea witnessed a modest improvement. Prices of Ethylene FOB Busan reached USD 892.78/MT, marking a +4.62% increase from the previous quarter. This upward movement was driven by stable demand from the packaging and plastics industries, especially polyethylene manufacturing. Many downstream sectors showed signs of revival after a quiet year-end in 2023. Additionally, unplanned maintenance at some regional crackers reduced availability in the market, which supported price gains during the quarter.Â
In Q2 2024, the market reversed its trend, and prices of Ethylene FOB Busan declined to USD 841.67/MT, a –5.72% drop from Q1 2024. The fall came because of weaker-than-expected buying interest from China and Southeast Asia, where downstream operations slowed down due to high inventory levels. On the supply side, most plants were operating steadily, which added to the regional availability and exerted downward pressure on prices. Additionally, a drop in naphtha costs, Ethylene’s main feedstock, further pushed prices down.Â
Q3 2024 remained largely steady in terms of pricing. Prices of Ethylene FOB Busan averaged at USD 841.11/MT, a minor dip of –0.07% compared to Q2. The market remained mostly balanced, with both supply and demand moving in sync. While domestic demand for film-grade polyethylene remained steady, export volumes did not show significant growth. The lack of major turnarounds or supply disruptions meant that the market stayed calm and prices moved within a narrow range throughout the quarter.Â
In Q4 2024, the Ethylene market showed slight signs of recovery. Prices of Ethylene FOB Busan rose to USD 857.67/MT, registering a +1.97% increase. This gain was supported by stronger seasonal demand in the packaging industry ahead of the holidays.
Several buyers replenished stocks, and a few planned maintenance activities in Northeast Asia tightened spot availability. Moreover, slight increases in upstream crude oil and naphtha prices added to the cost pressure, leading to firmer pricing for Ethylene.Â
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Ethylene is a colorless, flammable gas with a sweet odor, primarily used as a key industrial chemical building block. It is one of the most important raw materials in the production of a wide range of products, including polyethylene (PE), ethylene oxide (EO), ethylene glycol (EG), and styrene. Ethylene is primarily produced through the steam cracking of hydrocarbons, such as naphtha, and is often obtained as a byproduct of refining and natural gas processing. It plays a crucial role in the manufacturing of plastics, textiles, automotive components, and chemical products, making it essential to a variety of industries, including packaging, construction, and automotive.
Packaging Type
Ethylene Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Physical Properties | |
| Density | 1.178 kg/m³ @ 0°C (Gas) |
| Flash point |  -135.5 °C (TCC ASTM D56) |
| Boiling point |  -103.7 °C @ 0 kg/cm²g |
| Vapor pressure |  780 kPa @ 20°C |
| Appearance | Colorless gas or liquid (at low temperatures) |
Ethylene Applications
Ethylene is a fundamental building block in the petrochemical industry and is one of the most widely used organic compounds. It is primarily utilized in the production of polyethylene, the world’s most common plastic, used extensively in packaging, containers, films, and household goods. Ethylene also serves as a key intermediate in the manufacture of other important chemicals such as ethylene oxide, ethylene dichloride, and styrene. These derivatives are essential in producing antifreeze, solvents, detergents, and synthetic fibers. Additionally, ethylene plays a vital role in the agricultural sector as a plant hormone, where it regulates fruit ripening and growth. Its versatility makes ethylene indispensable across numerous industries including plastics, textiles, automotive, construction, and agriculture.
U.S.–China Trade Tariff Dispute (April 2025):Â
In April 2025, the U.S. and China imposed steep tariffs up to 125% on a wide range of goods, including petrochemicals such as Ethylene and its derivatives. This disrupted global trade flows, increased costs for key downstream industries like plastics and packaging, and led to uncertainty in global supply chains. The result was price volatility, especially in Asia and North America.Â
Russia-Ukraine War & Energy Crisis (2022–2023):Â
The war in Ukraine triggered a major energy crisis in Europe, driving up natural gas and naphtha prices—both key feedstocks for Ethylene production. Many European crackers faced shutdowns or scaled-back operations due to high energy costs, tightening Ethylene supply across the region. This imbalance contributed to price spikes and redirected trade flows toward Asia and the U.S.Â
Post-COVID Demand Surge (2021–2022):Â
As global economies reopened after COVID-19 lockdowns, demand for consumer goods, construction materials, and packaging rebounded rapidly. Ethylene, a building block for polyethylene and other plastics, saw strong demand growth. However, supply was still recovering, especially in regions hit by earlier shutdowns, pushing prices higher across global markets.Â
Â
U.S. Gulf Coast Hurricane Disruptions (2020 & 2021):Â
Multiple hurricanes—including Laura (2020) and Ida (2021)—hit the U.S. Gulf Coast, home to a large concentration of Ethylene crackers. These storms caused widespread plant shutdowns, port delays, and power outages, significantly reducing output. As a result, domestic Ethylene supply tightened, and prices surged both regionally and globally due to reduced exports.Â
2020 Oil Price Crash & Cracker Cutbacks:Â
In early 2020, oil prices collapsed due to the COVID-19 pandemic and a brief price war between Saudi Arabia and Russia. The resulting economic slowdown led to reduced demand for plastics, causing many crackers—especially those using naphtha—to cut production. Ethylene prices initially fell but rebounded quickly as demand recovered later in the year, creating significant volatility.Â
PriceWatch is your trusted resource for tracking global ethylene price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the ethylene market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, PriceWatch keeps you fully informed of market dynamics.
In addition, PriceWatch provides detailed forecasts and updates on production capacities, enabling you to anticipate market changes and make well-informed decisions. With PriceWatch, you gain a competitive edge in understanding all the elements that influence ethylene prices worldwide. Stay ahead of the curve with PriceWatch’s reliable, accurate, and timely ethylene market data.
Track PriceWatch's ethylene price assessment on a weekly basis since 2015 onwards, along with short-term forecasts, and get access to the detailed report in a downloadable format.
This research methodology ensures that PriceWatch delivers accurate, timely, and actionable Ethylene pricing assessments, helping clients stay ahead of market trends and make well-informed business decisions.Â
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
Ethylene is a colorless, flammable gas with a sweet odor, primarily used as a key industrial chemical building block. It is one of the most important raw materials in the production of a wide range of products, including polyethylene (PE), ethylene oxide (EO), ethylene glycol (EG), and styrene. Ethylene is primarily produced through the steam cracking of hydrocarbons, such as naphtha, and is often obtained as a byproduct of refining and natural gas processing. It plays a crucial role in the manufacturing of plastics, textiles, automotive components, and chemical products, making it essential to a variety of industries, including packaging, construction, and automotive.
Packaging Type
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.
| Physical Properties | |
| Density | 1.178 kg/m³ @ 0°C (Gas) |
| Flash point |  -135.5 °C (TCC ASTM D56) |
| Boiling point |  -103.7 °C @ 0 kg/cm²g |
| Vapor pressure |  780 kPa @ 20°C |
| Appearance | Colorless gas or liquid (at low temperatures) |
Applications
Ethylene is a fundamental building block in the petrochemical industry and is one of the most widely used organic compounds. It is primarily utilized in the production of polyethylene, the world’s most common plastic, used extensively in packaging, containers, films, and household goods. Ethylene also serves as a key intermediate in the manufacture of other important chemicals such as ethylene oxide, ethylene dichloride, and styrene. These derivatives are essential in producing antifreeze, solvents, detergents, and synthetic fibers. Additionally, ethylene plays a vital role in the agricultural sector as a plant hormone, where it regulates fruit ripening and growth. Its versatility makes ethylene indispensable across numerous industries including plastics, textiles, automotive, construction, and agriculture.
The price of Ethylene is influenced by several key factors, including the cost of feedstocks such as crude oil, naphtha, and ethane, which vary by production region. Market dynamics such as supply-demand balance, plant operating rates, and unplanned shutdowns can significantly impact price fluctuations. Additionally, global economic trends, energy prices, geopolitical developments, trade regulations, and shipping costs play critical roles. Since Ethylene is a cornerstone chemical used in producing polyethylene and other derivatives, changes in downstream industries—such as packaging, automotive, and construction—also affect pricing trends.
Global supply and demand shifts are directly reflected in Ethylene pricing. Rising demand from the plastics, construction, and consumer goods sectors can push prices upward, especially during times of limited supply or high production costs. Conversely, periods of oversupply—due to new capacity additions or weakened demand—can result in lower prices. Factors like plant maintenance, outages, and inventory levels further contribute to volatility. To manage costs effectively, procurement professionals must monitor production forecasts, industry growth, and economic indicators that influence global consumption patterns.
Ethylene pricing varies significantly by region, driven by differences in feedstock economics, production methods, infrastructure, and local demand. For instance, North America often benefits from lower ethylene production costs due to abundant shale gas (ethane-based production), whereas regions like Asia may rely more on naphtha, making them more sensitive to crude oil price changes. Europe, with older infrastructure, may experience tighter margins and more frequent supply constraints. Procurement teams should evaluate regional cost structures, logistics considerations, and trade dynamics to optimize sourcing strategies, ensure supply continuity, and minimize exposure to regional pricing volatility.