# Ethylene: Trading

Why Asian crackers need $800 ethylene to break even

Source page: https://www.materialinsights.org/chemicals/ethylene/trading/

What this tab covers How it is bought and sold: buyers and sellers, price benchmarks and who publishes them, exchanges, contract types, traders, how Indian buyers price it, recent price points, and good sources to follow.

#### Who buys, and where

- US Gulf Coast (Mont Belvieu pipeline grid, export terminals)
- Middle East (mostly captive, little spot)
- Southeast Asia and Korea spot cargoes

#### Who sells, and from where

- NE Asia (China, Taiwan) import markets
- Europe (Italy imports rose about 12-fold from the US in 2025, Argus)
- India (small refrigerated imports for derivatives)

#### Price benchmarks

| Benchmark | Publisher | Basis |
|---|---|---|
| **Ethylene CFR NE Asia** | ICIS / S&P Global Platts | spot, weekly and daily |
| **Ethylene Mont Belvieu (non-TET and EPC)** | OPIS, Argus, ICIS | spot pipeline, daily |
| **NWE ethylene monthly contract price** | settled between producers and consumers, reported by ICIS/Platts | monthly contract, FD NWE |
| **Ethylene CFR SE Asia** | ICIS / Platts | spot, weekly |

#### Exchanges

| Venue | Contract | Notes |
|---|---|---|
| **CME Group** | Mont Belvieu ethylene cleared swaps (indicative) | thin liquidity; most hedging is via feedstock (ethane, naphtha) or polymers |
| **Dalian Commodity Exchange** | LLDPE and PP futures | deepest liquid proxy for Asian olefin chain risk |

#### Contract types

- Monthly contract prices (Europe, US) with formula links to naphtha or ethane
- Spot cargoes of 3,000-10,000 t on refrigerated ships
- Long-term pipeline supply between neighbouring plants
- Tolling and cracker joint ventures

#### Traders and distributors

- Vitol
- Trafigura
- Mitsui
- Mitsubishi Corporation
- Marubeni
- Sumitomo Corporation
- Enterprise Products (US export terminal operator)

#### How Indian buyers price it

- India consumes almost all ethylene captively; merchant trade is small and priced on import parity to CFR India or CFR SE Asia.
- Downstream PE is priced by producer list prices (Reliance, IOCL, GAIL, HMEL) revised every one to two weeks against import parity.
- The BIS Quality Control Order on polyethylene, imposed in January 2024, was rescinded in November 2025 (CareEdge 2025), easing imports.

#### Recent price points

| Date | Price | Basis | Source |
|---|---|---|---|
| Nov 2025 | **about $364/t** | US Gulf spot | Argus podcast, Mar 2026 |
| Dec 2025 | **$700s/t (expected for 2026)** | CFR Asia | ChemOrbis, Dec 2025 |
| Dec 2025 | **naphtha $560-580/t; break-even ethylene about $800/t** | Asia | ChemOrbis, Dec 2025 |
| Aug 2026 | **prices 'surged' in week to 21 Aug on EO, glycol, PE demand; no level published** | Asia | ICIS via Hellenic Shipping News, Aug 2026 |

#### Good sources to follow
[Argus Chemicals podcasts](https://www.argusmedia.com/en/news-and-insights/energy-and-commodity-podcasts)free podcast · Argus Media

Global ethylene supply, margins and closures
[ICIS Asian Chemical Connections blog](https://icis.com/explore/resources/news/2024/09/17/11032070/blog-global-ethylene-12-months-later-nothing-seems-to-have-changed)free blog · John Richardson, ICIS

China-driven petrochemical cycle and capacity analysis
[ChemOrbis plastics news](https://www.chemorbis.com/en/plastics-news)freemium research site · ChemOrbis

Asian olefin and polymer prices and outlooks
[Platts Chemical Trends](https://www.spglobal.com/energy/en/news-research/special-reports/chemicals/chemical-trends-h1-2026/rationalisation/propylene)freemium research site · S&P Global Commodity Insights

Half-yearly olefin and polymer outlook
[Hellenic Shipping News (petrochemicals)](https://www.hellenicshippingnews.com)free newsletter · Hellenic Shipping News Worldwide

Reposts ICIS and Platts weekly Asian petrochemical reports

## Other sections

- [Summary](https://www.materialinsights.org/chemicals/ethylene/index.md)
- [Overview](https://www.materialinsights.org/chemicals/ethylene/overview/index.md)
- [Correlation](https://www.materialinsights.org/chemicals/ethylene/correlation/index.md)
- [Production route](https://www.materialinsights.org/chemicals/ethylene/routes/index.md)
- [Production](https://www.materialinsights.org/chemicals/ethylene/production/index.md)
- [Feedstocks](https://www.materialinsights.org/chemicals/ethylene/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/chemicals/ethylene/cycles/index.md)
- [Movement](https://www.materialinsights.org/chemicals/ethylene/movement/index.md)
- [Regulation](https://www.materialinsights.org/chemicals/ethylene/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/chemicals/ethylene/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/chemicals/ethylene/emissions/index.md)
- [Relationships](https://www.materialinsights.org/chemicals/ethylene/links/index.md)