Ethylene (IUPAC name: ethene) is the simplest alkene, with the molecular formula C2H4 and a carbon-carbon double bond. At standard conditions it is a colorless, flammable gas with a faintly sweet odor. It is the world's largest-volume petrochemical by production, serving as the primary building block for polyethylene (the most widely produced plastic), as well as for ethylene oxide, ethylene dichloride, ethylbenzene, vinyl acetate, and numerous other derivatives. Ethylene occurs naturally in plants as a phytohormone that regulates fruit ripening, senescence, and other developmental processes. Commercially, it is produced almost exclusively by steam cracking of hydrocarbon feedstocks and is typically stored and transported as a cryogenic liquid or under pressure.
How About the Price?
Key Influence Events
Price Trajectory 2020–2026 (Brief Recap)
Phase 1 — Initial decline (2020): Following the start of the COVID-19 pandemic and despite no specific influence events logged, prices declined from $120.5 in January 2020 to $88.9 by December 2020, reflecting demand disruptions and market uncertainty.
Phase 2 — Gradual recovery and capacity additions (2021): Prices recovered steadily throughout 2021, rising from $92.3 in January to $127.5 in December, supported by new ethylene plant start-ups in China including PetroChina’s additions in July and August 2021, enhancing supply capabilities and market confidence.
Phase 3 — Steady price rise with occasional supply disruption (2022): Prices increased further from $130.8 in January to $168.2 in December 2022. The June 2022 Sinopec Shanghai Petrochemical fire caused a temporary force majeure supply disruption, tightening the market amidst ongoing capacity expansions.
Phase 4 — Continued capacity growth and innovation (2023): Prices rose from $171.6 in January to $209.0 in December 2023, reflecting continued capacity expansions such as Sinopec’s new plant test runs in February, Dushanzi Petrochemical construction in September, and increased focus on sustainable ethylene production as per July 2023 regulatory events.
Phase 5 — Accelerated price increases amid ongoing supply growth and regulatory impacts (2024–mid-2026): Prices continued rising from $212.4 in January 2024 to $310.0 by June 2026, supported by further capacity additions including Sinopec's 1.2 million tpy plant startup in November 2024 and increasing domestic capacity projections in late 2025, despite regulatory pauses and temporary cracker shutdowns affecting supply.
Supply-side factors
- China’s Sinopec adding 800 ktpa ethylene capacity at Zhanjiang refinery (Oct 2020)
- PetroChina launching 800 ktpa and 600 ktpa ethane-to-ethylene plants in Shaanxi and Xinjiang respectively (Jul-Aug 2021)
- Sinopec’s Shanghai Petrochemical fire-induced shutdown causing force majeure (Jun 2022)
- Sinopec’s 1 million tpy ethylene plant test run in Hainan (Feb 2023)
- China’s Dushanzi Petrochemical beginning construction of 1.2 million tpy plant, expanding to 3 million tpy (Sep 2023)
- Sinopec’s new 1.2 million tpy ethylene plant startup in Tianjin Nangang zone (Nov 2024)
- LG Chem temporarily shutting down 800,000 tpy naphtha cracker in Yeosu, South Korea (Mar 2026)
- China’s ethylene capacity operating over 54 million tpy projected to rise to ~9% of global capacity by 2030 (Sep 2025)
Demand-side factors
- No explicit demand-side events logged, but COVID-19 pandemic likely caused significant demand disruption in 2020 reflected in price declines
- Increased market confidence and demand recovery in 2021 alongside capacity expansions
- Sustainability-focused innovation funding raised by French-US startup for recycled carbon ethylene production (Jul 2023)
- Regulatory pauses on new ethylene units due to trade tensions impacting demand-supply balance (Oct 2025)
- General upward price trends suggest strengthening demand along with capacity growth from 2021 onward despite some supply-side shocks
Top Countries Production Capacity
| Property | Typical Value / Range | Unit | Grade / Note |
|---|---|---|---|
| Purity (Polymer Grade) | ≥ 99.9 | mol % | Polymer Grade |
| Purity (Chemical Grade) | 99.5 – 99.9 | mol % | Chemical Grade |
| Acetylene (max) | ≤ 1 (polymer grade); ≤ 5 (chemical grade) | ppm vol | Both grades |
| Methane + Ethane (max) | ≤ 500 (polymer grade) | ppm vol | Polymer Grade |
| Carbon Monoxide (max) | ≤ 1 | ppm vol | Polymer Grade |
| Carbon Dioxide (max) | ≤ 1 | ppm vol | Polymer Grade |
| Hydrogen (max) | ≤ 5 | ppm vol | Polymer Grade |
| Oxygen (max) | ≤ 1 | ppm vol | Polymer Grade |
| Water (max) | ≤ 5 | ppm vol | Polymer Grade |
| Sulfur (total, max) | ≤ 1 | ppm wt | Polymer Grade |
| Molecular Weight | 28.05 | g/mol | — |
| Boiling Point (1 atm) | -103.7 | °C | — |
| Melting Point | -169.2 | °C | — |
| Vapor Pressure (20 °C) | ~41.5 | bar abs | — |
| Flammability Limits in Air | 2.7 – 36 | vol % | — |
| Auto-ignition Temperature | 490 | °C | — |
Who are the Top Players?
| Company | Headquarters | Key Facilities |
|---|---|---|
| Dow Chemical | Midland, Michigan, USA | Freeport TX, Plaquemine LA, Terneuzen, Stade, Map Ta Phut |
| ExxonMobil | Spring, Texas, USA | Baytown TX, Fife UK, Singapore |
| SABIC | Riyadh, Saudi Arabia | Geleen, Wilton, Jubail |
| LyondellBasell | Rotterdam, Netherlands | Channelview TX, Corpus Christi TX, Berre, Münchsmünster, Wesseling |
| INEOS | London, United Kingdom | Grangemouth, Rafnes, Köln |
| Shell | The Hague, Netherlands | Moerdijk, Deer Park TX, Norco LA, Monaca PA |
| Chevron Phillips Chemical | Houston, Texas, USA | Cedar Bayou TX, Port Arthur TX, Sweeny TX |
| Sinopec | Beijing, China | Zhenhai, Beijing, Guangzhou, Maoming, Neijing, Puyang, Qilu, Shanghai, Tianjin |
| Formosa Plastics | Taipei, Taiwan | Point Comfort TX |
| BASF | Ludwigshafen, Germany | Port Arthur TX, Antwerp, Nanjing, Zhanjiang |
Our Analysis are Happy
"Global volatility doesn't have to be a risk for your business. We monitor feedstock shifts and geopolitical trends daily to help you anticipate price movements before they hit the market."
Theo James
"Data is only as good as its source. We go beyond the numbers to ensure that the product grade you select matches your specific application, reducing waste and optimizing your operational efficiency."
Emilia Munro
"Timing is everything in petrochemical procurement. Our goal is to align your purchasing cycles with market troughs, effectively lowering your cost basis and maximizing your margins."
Branden Griffiths
we’re here to all your questions
Everything you need to know about our market analysis, product quality, and procurement process.
How much for a custom market analysis?
Costs vary based on the scope. Please contact our sales team for a custom quote.
Do you offer trade credit or bulk pricing?
Yes, we offer flexible payment terms and volume-based pricing for corporate accounts.
Do you provide product quality documentation?
Yes, every delivery includes a Certificate of Analysis (COA) and safety documentation (MSDS).
Can you help me select the right product specification?
Certainly. Our technical experts are available to guide you to the ideal grade for your specific application.