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According to Sinochem New Network, at the European petrochemical industry lunch meeting held in Valencia, Spain, from December 3rd to 5th, market participants stated that there would be little improvement in the structural fundamentals of Europe’s ethylene industry by 2026. Market experts say that the weak demand situation has persisted for some time now; ethylene demand is expected to decline significantly in 2025 compared to 2024, and it will remain weak in 2026 as well. European ethylene producers generally expect limited production growth or even no growth in the coming year; downstream buyers have also made it clear that there will be little change in demand for ethylene derivatives. However, most participants agreed that despite a bleak demand outlook, the actual volume of ethylene delivered in 2026 is likely to remain unchanged compared to 2025. The loose supply situation further exacerbated market pressure. By 2025, the European petrochemical industry had embarked on a process of consolidation: a total of 5 cracking units were shut down, 2 were left idle, and another 2 were under scheduled maintenance. M&A activities in this sector also continued unabated. Nevertheless, European ethylene supply remained stable, with no shortages in the market, and the fundamentals of an ample supply situation did not change. Against this backdrop, expectations in the market for further industry consolidation and elimination by 2026 are growing stronger. Weak demand and supply have directly dragged down price trends, with spot ethylene prices in Europe showing a continuous downward trend in 2025. According to Platts Energy Solutions, a division of S&P, the spot delivery price of ethylene in Northwest Europe on December 10 was 507.50 euros per ton, a significant drop of 288 euros per ton compared to 795.50 euros per ton at the beginning of 2025. Under pressure from falling prices, both producers and end-users hope to see a larger-scale reduction in production capacity in the industry. One producer admitted, \"Plant maintenance in the first half of 2026 might bring short-term relief to the market, but in terms of structural improvements, the industry still needs to shut down more production capacity, especially the inefficient capacity in the ethylene derivatives sector.\" ”