The European ethylene industry has had a phenomenal run in recent years. Since 2014, nameplate operating rates of regional steam crackers has been increasing. Strong asset run rates have gone hand-in-hand with robust profitability for ethylene producers. Wood Mackenzie Chemicals currently assesses that the European ethylene industry has reached top of cycle conditions in 2017/2018. Following a period of propylene production decline in Europe, driven mainly by steam cracker feedstock lightening, the industry finds itself in an evolving supply gap situation. Propylene pricing has strengthened relative to ethylene in 2018. PDH investments in Europe are several years away and the region must find alternative ways to balance the market in 2019. This insight highlights our latest thoughts of what can be expected for 2019 in the European ethylene and propylene markets.