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KoreaAt the beginning of Q1 2025, the market underwent a slight correction. 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.
In the final quarter of 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.
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.
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. 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.
In the first quarter of 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.
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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
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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.
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