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Recently, ethylene prices in both Asia and Europe have been on the rise, driven by supply disruptions and increasing demand. In Asia, reduced production rates, technical issues at key facilities, and the resumption of downstream operations has led to a tighter supply. Meanwhile, in Europe, ongoing supply constraints, coupled with weak structural demand, have contributed to upward pressure on prices. These regional trends highlight the challenges faced by the ethylene market in maintaining price stability amid fluctuating production and consumption levels.

In Asia, Ethylene prices rose, driven by a reduction in supply following the holiday period for the Chinese New Year. (During this period, many factories, including those in ethylene production, shut down for an extended break, leading to a temporary drop in supply and an increase in prices as operations resume.)

Ethylene production firms faced difficulties due to a shortage of spot inventories, and as downstream companies gradually resumed operations, the market's supply remained constrained. In response, major market participants actively replenished inventories to maintain supply chain stability, further pushing prices upward.

Discussions for March cargoes had started, with limited availability of March-loading shipments contributing to a rise in bid-offer levels in Northeast Asia. While both buyers and sellers took a more measured approach to negotiations, there remained caution regarding further price increases. Additionally, a naphtha-fed cracker in Malaysia had been shut down due to technical issues, further tightening supply in Southeast Asia.

In Northeast Asia, exports were disrupted by a planned turnaround at a South Korean production facility. This, coupled with higher operating rates from other producers, led some players with rigid buying needs to adopt an assertive buying stance. Meanwhile, cargoes from South China helped alleviate some of the supply tightness, preventing even greater price hikes.

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In Europe, ethylene prices also saw an increase, largely due to supply constraints as crackers continued to operate at reduced rates. Limited availability in the coastal Mediterranean region kept market prices steady, though structural demand remained weak, with high import prices deterring buyers from engaging in spot trades.