Why are ethylene (C2) prices in Asia falling despite increased naphtha cracker run rates in some countries?

Ethylene prices in Asia are falling due to dwindling demand in June—especially in China—despite higher run rates at naphtha crackers in Thailand, Indonesia, South Korea, and elsewhere; this demand weakness is compounded by compressed derivative margins, crude oil price losses, a buy-sell divide stalling June shipment discussions in Southeast Asia, reduced intake from industrial end users in China and Indonesia, and a resulting supply glut for C2 that forces producers to slash prices aggressively to move excess inventory.

What role is China playing in the current Asian petrochemical supply shortage, and why?

China has become a net exporter of resins amid the effective closure of the Strait of Hormuz, with buyers viewing Chinese resins—particularly from coal-based producers who maintained high run rates—as one of the last remaining supply options; meanwhile, carbide-based PVC producers in China continue operating at full capacity to capitalize on shortages and higher prices, and Chinese PP exports to India surged to 13% of total March 2026 exports (406,000 tonnes), though overall Chinese PE output fell 8.2% year-on-year in April.

Insight: Weak demand, lower crude prices weigh on Asia petrochemical prices

May 12, 2026

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Insight: Weak demand, lower crude prices weigh on Asia petrochemical prices

Insight: Weak demand, lower crude prices weigh on Asia petrochemical prices

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