Asia
In Asia, LAO markets experienced downward pressure throughout Q4’24, primarily influenced by weaker crude oil prices and sluggish demand from the polyethylene co-monomer sector. Chinese buyers remained cautious with their purchases, while Southeast Asian markets saw reduced activity due to high inventory levels.
The butene market was particularly affected by competition from alternative feedstocks, while hexene and octene showed more resilience due to their specialized applications. Regional producers faced margin pressure as feedstock ethylene costs remained volatile.
Europe
European LAO markets demonstrated mixed performance during Q4. The market for butene remained relatively stable despite pressure from lower crude oil prices, supported by steady demand from the polyethylene sector. Hexene and octene markets showed more strength due to limited availability and consistent demand from specialty applications. However, higher energy costs continued to impact production economics, forcing some producers to adjust operating rates. The quarter also saw increased competition from U.S. imports, particularly in the butene segment.
North America
North American LAO markets saw significant developments in Q4, marked by capacity expansions and improved export capabilities in the U.S. Gulf Coast region. The launch of new daily price assessments by major pricing agencies reflected the growing importance of the U.S. as a global LAO supplier. Strong ethylene production and favourable ethane feedstock costs supported competitive pricing for U.S. producers. However, domestic demand showed some weakness toward the end of the quarter as downstream polyethylene producers reduced operating rates to manage inventory levels.
