The IEA sharply lowered its 2026 global oil demand outlook, citing the escalating Mideast conflict and elevated energy prices. The agency now projects a significantly steeper year-on-year decline in consumption than previously forecast, warning that market tightening and demand destruction are accelerating.
The IEA expects world oil demand to decline year-on-year for the first time since 2020, driven by the Iran war and Strait of Hormuz closure. Prices have eased on prospects of a surplus late in 2026, but renewed hostilities threaten supplies and introduce volatility.
Asia
In Asia, POE prices showed mixed movement during the first half of the year. Early in Q1, prices held steady despite a temporary power outage at South Korea’s Daesan Complex. However, in April, prices edged higher, supported by regional supply tightening from maintenance shutdowns and rising feedstock costs.
Improved demand—especially in automotive—helped drive this increase. Still, overall consumption remained weak in many APAC countries, held back by sluggish construction activity and limited investment. Easing port congestion and more stable shipping routes improved supply flow but did not significantly stimulate broader market demand.
Europe
In Europe, POE prices dipped in Q1 as weak construction activity and modest automotive demand kept consumption levels low. Although March showed signs of a slight automotive rebound, it wasn’t enough to offset overall softness in the market. Spot prices dropped due to cautious procurement behaviour and reduced feedstock costs.
By April, however, prices rose slightly, driven by better logistics, tighter cracker operations, and firming ethylene prices. Despite minor recovery in packaging and electrical applications, persistent inflation and economic uncertainty limited purchasing appetite.
North America
In the first half of 2025, POE prices in North America moved slightly downward. While production costs stayed stable due to consistent ethylene availability, the market faced pressure from logistical challenges, such as port congestion and proposed shipping fee increases. These issues disrupted supply chains and impacted supplier confidence.
Although sectors like automotive and construction offered moderate support, overall demand was subdued. High interest rates and cautious consumer sentiment limited aggressive buying. April saw a further softening in prices, as demand didn’t pick up enough to offset rising logistics expenses. The packaging and consumer goods industries also slowed procurement due to elevated input costs.
Analyst Insight
According to Procurement Resource, POE prices are expected to remain relatively stable, with limited upside unless demand significantly improves and logistics conditions ease further.
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Asia
In Asia, POE prices experienced a slight drop over the quarter, reflecting stable supply and mixed demand conditions. The automotive sector continued to grow, particularly in China where passenger vehicle sales improved, especially in December. Packaging and consumer goods maintained steady demand, but weak activity in the construction sector weighed on overall market sentiment.
Import volumes from key exporting countries remained steady, keeping inventories balanced. Logistics moved smoothly, but uncertainty in global trade and soft export orders limited any upward price movement. The quarter ended with cautious market behaviour and moderate pricing corrections.
Europe
European POE prices also fell during Q4’24, driven by softer demand and reduced raw material costs. Ethylene prices dropped significantly, easing production costs for POE manufacturers. Inventory levels were adequate, and improved supply chain efficiency supported consistent availability. While production stabilized and port congestion eased, weak economic conditions and political uncertainties across the region impacted buyer confidence.
The automotive market showed uneven performance, and construction activity remained subdued due to low investment and ongoing instability. These factors kept demand subdued, leading to a cautious market environment and a further dip in POE prices.
North America
In the fourth quarter of 2024, POE prices in North America saw a modest decline, mainly due to lower demand from the construction and packaging sectors. Although the automotive industry provided some support with steady sales growth in November and December, it wasn't enough to offset the dip from other downstream sectors.
Supply conditions remained stable, with manufacturers maintaining healthy inventory levels. Despite logistical delays and port congestion, there were no major supply disruptions. Suppliers adopted a cautious approach to manage inventories, which helped avoid sharper price falls. Overall, the market remained balanced, with limited buying activity contributing to the downward pressure on prices.
Polyolefin elastomers are a type of polymer that belongs to the thermoplastic polymer category. They have high flexibility and elasticity just like rubber. These polymers are composed of ethylene and -olefin copolymers and have great chemical resistance and high low temperature performance. Due to their ability to survive deformation and regain their original shape, these elastomers are widely used in seals, molded goods, wire and cable insulation, automotive components, and other areas.
Medical devices, Packaging, Automotives, Wires and cables
Exxon Mobil Corporation, LG Chem, LyondellBasell Industries Holdings BV, Mitsubishi Chemical Holding Corporation, SABIC
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
In this process, ethylene copolymerizes with alpha olefins and gives polyolefin elastomer. This polymerization reaction takes place in the presence of metallocene catalyst.
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