Petrochemicals are the chemical products which are derived from petroleum. Olefin is one of the divisions of petrochemical which includes Ethylene, Propylene, and Butadiene. The product Ethylene is obtained by pyrolysis of Naphtha or other hydrocarbons such as Ethane and Propane. In chemical industries, Ethylene is an important monomer feedstock, which is a raw material used as a manufacturer of polymers like polyethylene, polyvinyl Chloride, and Polystyrene. It is also used for organic chemicals like ethylene oxide and ethylene glycols. These products are mainly used for packaging, transportation, electronics, textiles, and construction.

According to market experts, in the year 2011, the prices of Ethylene gradually increased, due to crises seen in the production of supply. The prices of Ethylene are taking cues from crude oil prices, which is approximately US$ 1000- US$ 1100 per ton. In the month of November, 2011, supplies were much tensed as the number of crackers were either shut or had reduced their operating rates as it was lower by 3% on Y-o-Y basis. At the end of 2011, the price of Ethylene increased in the month of December by 8% to US$ 1096/ton.