Ethylene Price Trend

Ethylene Prices December 2023

The price of ethylene in the United States for Q4 reached $417/MT in December. In the initial phase of Q4 2023, the prices of ethylene increased owing to the limited availability of the material in the market. Additionally, the prices for feedstock ethane witnessed an elevation due to the sufficient cost support from feedstock ethane in the domestic market.

In Japan, ethylene prices experienced an uptick in the early stages of Q4, reaching $848/MT, on account of cost pressures from elevated feedstock Naphtha prices in the domestic market. This, in turn, resulted in a bullish outlook among key players in the ethylene market. However, ethylene prices witnessed a decline in Japan towards the end of Q4 due to low seasonality.

The price trend of ethylene was $725/MT during October 2023 in Germany due to inadequate material availability in the domestic market. However, ethylene prices experienced a downward trend during November and December 2023, which can be attributed to persistent inflationary pressure and high interest rates.

In Saudi Arabia, ethylene prices saw an upward trajectory in Q4 2023, reaching $862/MT, driven by increased Naphtha and robust crude oil prices. However, there was a decline in ethylene prices towards the end of Q4 due to suppressed demand during off-season slowness and moderate global economy.

Ethylene Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Ethylene Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of ethylene pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of ethylene at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of ethylene price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing ethylene price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Ethylene Market Analysis

The global ethylene market size reached US$ 142.6 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 238.3 Billion, at a projected CAGR of 5.90% during 2023-2032.

• The availability and pricing of feedstocks, such as naphtha, ethane, and propane, is impacting the market, as these feedstocks are used to manufacture ethylene. For instance, the shale gas revolution in the United States resulted in the low-cost production of ethylene in the US market due to sufficient natural gas feedstock. It also assists in reducing the dependence of the country on fossil fuels.
• Ongoing advancements in catalyst technology or process optimization are enhancing yield of ethylene while consuming lower energy.
• The growth of the ethylene market also depends on global economic factors, such as gross domestic product (GDP) rate, industrial output, and consumer spending.
• Key players are focusing on developing bio-based or recyclable plastics due to stricter regulations on single-use plastics. They are also innovating ethylene production processes, such as steam cracking and catalytic cracking technologies, that can positively impact production costs and efficiency.
• The growing demand for ethylene in various industries, including packaging, construction, plastics, and textiles, as it is used as a key raw material, is offering a favorable market outlook. There is also a rise in the demand for lightweight plastics in the automotive industry to improve fuel efficiency of the vehicle.
• The market share of ethylene is also expanding owing to capital investments in new ethylene production capacities or the expansion of existing facilities. Large-scale projects, particularly in regions with abundant feedstock availability or strategic geographic locations, are positively influencing the market outlook.
• The increasing adoption of sustainable practices in the petrochemical industry due to the rising awareness among the masses about climate change and environmental degradation.
• A positive trend of the market is also being created by the growing demand for ethylene in emerging economies on account of rapid urbanization and inflating income levels of individuals.
• Ethylene is also becoming popular due to the escalating demand for ethylene derivatives, such as ethylene oxide, ethylene glycol, and vinyl acetate monomer (VAM), in various industries.

Ethylene News

The report covers the latest developments, updates, and trends impacting the global ethylene market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in ethylene production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the ethylene price trend.

Latest developments in the ethylene industry:

• In 2022, Braskem Idesa (BI) announced that they signed an investment agreement with with Advario for a joint 50% stake to construct and operate an ethane import terminal in Mexico.
• In 2021, Lummus Technology announced that it has signed a memorandum of understanding (MoU) with Braskem Netherlands B.V., a subsidiary of Braskem, for the licensing rights of green ethylene technology of the Braskem for two ethanol to ethylene conversion projects under development in North America and Asia.
• In 2021, The Dow Chemical Company announced its plan to build the first ethylene cracker and derivatives site integrated with net-zero carbon emissions to increase its capacity of advantaged ethylene, polyethylene and derivatives manufactured across Alberta.

Product Description

Ethylene is a colorless and flammable gas with the chemical formula C₂H_4. It is the simplest alkene molecule with a sweet odor, consisting of two carbon atoms bonded together with a double bond and four hydrogen atoms.

Ethylene is produced industrially through various methods, with the most common being steam cracking of hydrocarbons, such as naphtha, ethane, propane, and butane. This process involves breaking down larger hydrocarbon molecules into smaller ones, yielding ethylene as one of the primary products. It is also produced naturally in plants, serving as a fruit ripening hormone.

Ethylene serves as an intermediate to produce surfactants and glycol-based products, such as coolants and heat-transfer fluids. It is employed in the synthesis of ethylene glycol, which assists in manufacturing antifreeze, polyester fibers, and polyethylene terephthalate (PET) resin for beverage bottles. It also helps in conducting various chemical reactions, resulting in the formation of various products.

Regional Coverage

The report provides a detailed analysis of the ethylene market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the ethylene price trend.

Global Ethylene Price

The report offers a holistic view of the global ethylene pricing trends in the form of ethylene price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price of ethylene but also provides insights into historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed ethylene demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Ethylene Price

In Europe, Ethylene prices have witnessed mixed bags during the fourth quarter of 2023. During October 2023, inadequate material availability in the market significantly increased ethylene prices. Meanwhile, there were high imported prices of ethylene in the domestic market, as imports from the Asian market have turned costly due to increased freight charges. However, during November and December 2023, ethylene prices experienced a downward trend on account of the moderate demand from downstream polyethylene and ethylene oxide industry.

This analysis can be extended to include detailed ethylene price information for a comprehensive list of countries.

North America Ethylene Price

During the fourth quarter of 2023, the ethylene market in North America experienced a mixed sentiment. During the initial of Q4 2023, ethylene prices significantly increased, however, during November and December, ethylene prices inched lower in the domestic market. In the meantime, the demand of ethylene from international markets including Asia and European markets has subdued in as macroeconomic challenges continue to keep consumer spending at bay.

Specific ethylene historical data within the United States and Canada can also be provided.

Middle East and Africa Ethylene Price

The ethylene market in the Middle East and Africa (MEA) region showcased fluctuations in prices throughout the final quarter of 2023. The domestic market witnessed a reduction in the production cost of ethylene due to a decrease in feedstock Naphtha prices, coupled with low crude oil prices. Despite turmoil in the Red Sea, upstream crude oil prices dropped due to weak demand and ample storage, further dropping the overall manufacturing cost of ethylene domestically.

In addition to region-wise data, information on ethylene prices for countries can also be provided.

Asia Pacific Ethylene Price

Throughout the final quarter of 2023, ethylene prices displayed varied sentiments in the Asia Pacific market. In the early stages of Q4, Ethylene prices saw an uptick in the market, driven by cost pressures from elevated feedstock Naphtha prices in the domestic market. However, the economic downturn in China, the world's second-largest economy, had a ripple effect on countries dependent on trade with Beijing for growth, including the Japanese ethylene industry.

This ethylene price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Ethylene Price

The analysis of ethylene prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of ethylene pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting ethylene price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The ethylene price charts ensure our clients remain at the forefront of the industry.