Middle East Conflict Pushes Asian Ethylene Prices to Record Highs
2026-3-30
On March 23, S&P Global Commodity Insights released a report showing that Asian ethylene prices hit a new all-time high on March 20, driven by tight feedstock supplies and persistently high upstream costs amid ongoing geopolitical tensions. On the day, S&P Global assessed Northeast Asia ethylene prices to rise USD 75 CFR per tonne in a single day to USD 1,425 per tonne, surpassing the previous peak of USD 1,400 per tonne set on April 4, 2022 during the early stages of the Russia-Ukraine conflict.
It is reported that multiple naphtha steam cracking units in Asia have reduced operating rates or declared force majeure, with ethylene supplies expected to remain tight through April. Market participants noted that contracted supply volumes have been reduced, making spot availability increasingly limited.
S&P Global also stated that for the week of March 23¨C29, Northeast Asia ethylene was offered at USD 1,450¨C1,500 per tonne, with buyer indications at around USD 1,400 per tonne over the weekend. In the short term, high feedstock costs and tight April supplies will continue to underpin a bullish outlook for the ethylene market. However, some buyers warned that further price increases could risk downstream units reducing operating rates or even shutting down, as derivative products have seen slow price gains and cautious end-user demand, squeezing profit margins.
On the upstream side, S&P GlobalĄ¯s benchmark Japan naphtha price fell USD 20 per tonne on March 20 after hitting an all-time high of USD 1,160.50 per tonne on March 19. On March 20, the weekly spread between Northeast Asia ethylene and naphtha widened by USD 194.25 per tonne to USD 284.50 per tonne.
It is reported that multiple naphtha steam cracking units in Asia have reduced operating rates or declared force majeure, with ethylene supplies expected to remain tight through April. Market participants noted that contracted supply volumes have been reduced, making spot availability increasingly limited.
S&P Global also stated that for the week of March 23¨C29, Northeast Asia ethylene was offered at USD 1,450¨C1,500 per tonne, with buyer indications at around USD 1,400 per tonne over the weekend. In the short term, high feedstock costs and tight April supplies will continue to underpin a bullish outlook for the ethylene market. However, some buyers warned that further price increases could risk downstream units reducing operating rates or even shutting down, as derivative products have seen slow price gains and cautious end-user demand, squeezing profit margins.
On the upstream side, S&P GlobalĄ¯s benchmark Japan naphtha price fell USD 20 per tonne on March 20 after hitting an all-time high of USD 1,160.50 per tonne on March 19. On March 20, the weekly spread between Northeast Asia ethylene and naphtha widened by USD 194.25 per tonne to USD 284.50 per tonne.