Sharp Rise in European Petrochemical Prices in March
2026-3-26
On March 20, ICIS released a report showing that European petrochemical prices rose sharply in March, driven by escalating conflicts in the Middle East, higher feedstock and energy costs and increasing risks of supply chain disruptions. Among the 30 major petrochemicals tracked by ICIS in its European price forecast, 90% are expected to increase and 7% to decline.
Driven by higher naphtha and energy costs, the March contract prices of Europe¡¯s three core basic chemical raw materials¡ªethylene, propylene and butadiene¡ªhave been confirmed to rise by €35¨C55 per tonne month-on-month. These pricing decisions were finalized during or before the early stages of the Middle East conflict and do not reflect the subsequent sharp surge in crude oil prices or the impact of the de facto blockade of the Strait of Hormuz.
In contrast, the March contract price of benzene, another key feedstock, was revised downward. After hitting an 11-month high in February, European benzene prices returned to a pattern dominated by weak demand and soft fundamentals. This pricing was also agreed prior to the outbreak of the Middle East conflict. To date, benzene and its downstream product phenol are the only two chemical products in Europe to see price declines in March. For styrene, also a benzene derivative, contract prices still rose by €73 per tonne despite lower feedstock costs, mainly due to market concerns that the conflict could disrupt Middle Eastern and global supplies, pushing up European spot prices.
Contract prices of products such as acetone and acrylonitrile were also lifted by rising propylene costs. Prices of key derivatives including polypropylene and polyethylene are likewise expected to trend upward.
The largest price increases in the European market in March are expected across the paraxylene chain, including purified terephthalic acid (PTA) and polyethylene terephthalate (PET). These products are typically priced at month-end and are set to fully reflect the conflict¡¯s impact on logistics, oil prices, and operating rates at major Asian production facilities.
Driven by higher naphtha and energy costs, the March contract prices of Europe¡¯s three core basic chemical raw materials¡ªethylene, propylene and butadiene¡ªhave been confirmed to rise by €35¨C55 per tonne month-on-month. These pricing decisions were finalized during or before the early stages of the Middle East conflict and do not reflect the subsequent sharp surge in crude oil prices or the impact of the de facto blockade of the Strait of Hormuz.
In contrast, the March contract price of benzene, another key feedstock, was revised downward. After hitting an 11-month high in February, European benzene prices returned to a pattern dominated by weak demand and soft fundamentals. This pricing was also agreed prior to the outbreak of the Middle East conflict. To date, benzene and its downstream product phenol are the only two chemical products in Europe to see price declines in March. For styrene, also a benzene derivative, contract prices still rose by €73 per tonne despite lower feedstock costs, mainly due to market concerns that the conflict could disrupt Middle Eastern and global supplies, pushing up European spot prices.
Contract prices of products such as acetone and acrylonitrile were also lifted by rising propylene costs. Prices of key derivatives including polypropylene and polyethylene are likewise expected to trend upward.
The largest price increases in the European market in March are expected across the paraxylene chain, including purified terephthalic acid (PTA) and polyethylene terephthalate (PET). These products are typically priced at month-end and are set to fully reflect the conflict¡¯s impact on logistics, oil prices, and operating rates at major Asian production facilities.