Europe is Becoming the Main Target Market for Ethylene in the United States
2025-8-21
On August 13th, Oeyvind Lindeman, Chief Operating Officer of Navigator Holdings Inc., a shipping company, said that as European derivative producers gradually adapt to the reality of local ethylene production capacity being phased out, Europe is rapidly becoming the main importer of ethylene from the United States.
Oeyvind pointed out, "For Europe, it is seen as a better option to fill the domestic production gap by importing ethylene from the United States. In July, 75% of Europe¡äs ethylene demand by sea freight came from the United States, the highest proportion in history, and this trend may continue.
He used Italy as an example to illustrate: "Italy¡äs cracking units have stopped local ethylene production, but downstream polyethylene factories are still operating, which has driven a significant increase in imports of ethylene from the United States." It has been particularly so since April. Versalis Italy shut down its Brindisi steam cracking unit in March and plans to close its Priolo cracking unit by the end of 2025.
There has been a recovery in US ethane exports, which have rebounded since the US government lifted restrictions on ethane export licenses on July 2nd. China is the largest buyer of ethane from the United States. During the license restrictions period from May to June, the US exports to China almost stagnated. However, as the exports resumed and reached a historic high in July, the market immediately saw demand for portable ethane transport ships.
Oeyvind pointed out, "For Europe, it is seen as a better option to fill the domestic production gap by importing ethylene from the United States. In July, 75% of Europe¡äs ethylene demand by sea freight came from the United States, the highest proportion in history, and this trend may continue.
He used Italy as an example to illustrate: "Italy¡äs cracking units have stopped local ethylene production, but downstream polyethylene factories are still operating, which has driven a significant increase in imports of ethylene from the United States." It has been particularly so since April. Versalis Italy shut down its Brindisi steam cracking unit in March and plans to close its Priolo cracking unit by the end of 2025.
There has been a recovery in US ethane exports, which have rebounded since the US government lifted restrictions on ethane export licenses on July 2nd. China is the largest buyer of ethane from the United States. During the license restrictions period from May to June, the US exports to China almost stagnated. However, as the exports resumed and reached a historic high in July, the market immediately saw demand for portable ethane transport ships.