Light olefins
Overview
The global light olefins market is made up of ethylene and propylene monomers. These product markets can be affected by a great many factors.
Ethylene is the most widely used commodity chemical and is produced globally in all major regions. It is converted into many products used in daily life like plastic packaging, durable goods, hygiene products and other consumer items. The ethylene market is driven primarily by regions of low production cost and regions of high demand growth. Polyethylene, ethylene’s largest derivative, represents about 65pc of global ethylene demand. Anyone involved in the ethylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Propylene is the second most widely used commodity chemical and is produced globally in all major regions. Propylene is a volatile commodity because of its predominantly co-product nature and unpredictable supply, but recently the industry has been trending to more on-purpose production. It is converted into many products used in daily life like plastic packaging, durable goods, automotive products, and woven fabrics. Polypropylene, propylene ’s largest derivative, represents about 70pc of global propylene demand. Anyone involved in the propylene industry – directly or indirectly – needs market and pricing insight to anticipate supply shortages and potential swings in pricing.
Our light olefins experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global market.
Latest light olefins news
Browse the latest market moving news on the global light olefins industry.
Turkish lira at all-time low against dollar
Turkish lira at all-time low against dollar
London, 19 March (Argus) — Turkey's lira currency fell to record lows against the US dollar today, after the arrest of Istanbul's mayor provoked concern about instability. The depreciation could cause imports of dollar-denominated commodities to become more expensive, although reaction was mixed across markets. The lira went as low at 40/$1 in early trading, from below 37/$1 on Tuesday 18 March, before easing to around 38/$1 later in the day. The lira has been slowly depreciating against the dollar for many years, but the sharp fall today came after Ekrem Imamoglu, one of President Recep Tayyip Erdogan's main political rivals, was held on suspicion of corruption and aiding a terrorist organisation. Turkey is a significant importer of natural gas, crude and LPG, as well as coal and petcoke, although demand for many commodities will be muted currently because of the Islamic fasting month of Ramadan. Early indications from the coal and petcoke markets were that all import trades had halted as the lira hit the record low. In polymers markets the focus is on whether demand recovers after Ramadan ends on 30 March. But a trading source in Turkey said the fall is not enough for "massive changes" to imports of oil products. The OECD forecasts headline inflation in Turkey at 31.4pc this year, the highest among its members, easing to 17.3pc in 2026. The IMF has forecast Turkey's economy will grow by 2.6pc this year, after an expansion of 2.7pc in 2024. By Ben Winkley, Aydin Calik, Joseph Clarke, Amaar Khan and Dila Odluyurt Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Plastics Europe urges de-escalation in trade tensions
Plastics Europe urges de-escalation in trade tensions
London, 14 March (Argus) — Industry association Plastics Europe has urged a de-escalation in ongoing trade tensions between the EU and the US, following the inclusion of polyethylene (PE) among products proposed by the European Commission for retaliatory tariffs. "The imposition of tariffs, particularly on industrial goods such as plastics, will disrupt supply chains, raise costs for businesses, and negatively impact consumers on both sides of the Atlantic," said Plastics Europe's managing director, Virginia Janssens, on 13 March. "We urge both the EU and U.S. to prioritise diplomatic solutions to avoid escalating trade tensions further." The European Commission on 12 March begun consultations on imposing countermeasures to US tariffs of 25pc on EU and other imports of steel, aluminium and related products. Other products include high-density polyethylene (HDPE), low-density PE (LDPE) and linear LDPE (LLDPE), according to a European Commission document listing the products proposed for retaliatory tariffs. The European Commission did not publish the specific level of proposed tariffs, noting that a formal legal proposal will follow consultation with industry and member states. But a senior EU official noted that "25pc might be a good number". The retaliatory tariffs, if approved by EU member states, will be implemented from 13 April. The US is a key global supplier of PE, with exports totalling around 14.2mn t in 2024. PE exports from the US to the EU in 2024 stood at 2.1mn t, forming around 15pc of the export share. The EU is a net importer of HDPE and LLDPE. This week's developments caught many market participants by surprise. There was no immediate impact on prices as many participants opted for a wait-and-see approach. The European PE market has been grappling with an uncertain demand outlook given weak underlying economic conditions. An imposition of import tariffs could help support domestic European PE production, but there are widespread concerns of these resulting in higher prices for consumer goods and adversely affecting future demand prospects. And higher costs of inputs could further hurt competitiveness of European finished goods in the global markets. Plastics Europe called for "collaborative efforts to resolve this dispute in a manner that protects industry, jobs, and consumers in both the U.S. and Europe." By Sam Hashmi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Saudi Arabia advances two new petrochemical projects
Saudi Arabia advances two new petrochemical projects
Mumbai, 3 March (Argus) — Saudi Arabia's Ministry of Energy has approved the allocation of feedstock to set up two new petrochemical complexes in Jubail. One of the allocations granted was for a joint feasibility study to set up Saudi producer Sipchem's and major petrochemicals firm LyondellBasell's (LYB) new complex in Jubail, according to the firms last week. The joint project is expected to have a mixed feed cracker and a production capacity of 1.5mn t/yr of ethylene and 1.8mn t/yr of polymer derivates. The project is expected to utilise LYB technology for production and will be majority owned by Sipchem, with the firm having a 60pc share of ownership. A target date for the project launch was not provided, with the project still in early stages of development. Sipchem and LyondellBasell also jointly own the Al-Waha Petrochemical Company, with a 75pc and 25pc stake respectively. Al-Waha has a production capacity of 465,000 t/yr of propylene and 450,000 t/yr of polypropylene. Sipchem also announced plans to increase propylene and polypropylene production capacities by 72,000 t/yr and 150,000 t/yr respectively at the Al-Waha complex, with the expansion planned to be completed by the fourth quarter of 2026. Separately, Saudi producer Tasnee also received the Ministry of Energy's approval for feedstock allocation to establish a petrochemical complex in Jubail, according to a notice on Saudi Exchange on 26 February. The project has a target start date in the fourth quarter of 2030 and is expected to have a production capacity of 3.3mn t/yr of high-density polyethylene (PE), linear low-density PE and MTBE, as well as a thermal cracker for ethylene production. It is also expected to produce specialised products such as block co-polymer, polyether polyols and phthalate-free plasticisers. By Kabir Dweit Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Braskem shifts focus to gas for polymer production
Braskem shifts focus to gas for polymer production
Sao Paulo, 27 February (Argus) — Brazilian petrochemical giant Braskem said it will increase its Rio de Janeiro petrochemical plant's capacity by 220,000 metric tonnes (t)/yr each of ethylene and polyethylene as part of its "switch to gas" efficiency initiative. The company will increase the use of domestic ethane from state-controlled Petrobras and reduce the use of naphtha, which is less competitive because of higher costs, chief executive Roberto Ramos said during the company's 2024 earnings call on Thursday. The company authorized R233mn ($40mn) for the new project's engineering studies and will sign a long-term ethane supply contract with Petrobras. Braskem aims to accelerate this investment, funded by Brazil's special tax regimen (REIQ) resources until the end of 2026, when the REIQ ends. The REIQ reduces the VAT-like PIS/COFINS taxes for the chemical and petrochemical industries and establishes benefits for companies that expand their installed capacity and/or install new plants. The expanded Rio de Janeiro plant is expected to start operations between late 2027 and early 2028. It will maintain current operational levels until then. Furthermore, Ramos said that its plant in Rio Grande do Sul state could also process natural gas, while the Camacari plant in Bahia can operate with a 10pc gas mix, potentially increasing to 20pc. "All Braskem furnaces that crack naphtha can be adjusted to use 20pc ethane and some propane, giving us a competitive edge with minimal investment," he said. Braskem is also considering gas-naphtha blends for its Sao Paulo state operations, but has no immediate plans to increase capacity. Ethane for the Rio de Janeiro plant will be supplied by Petrobras from pre-salt fields, transported via the Rota 3 pipeline, and processed at the Energias Boaventura natural gas-processing unit. A long-term financing contract with Petrobras is being finalized. Petrochemical downturn Meanwhile, Braskem anticipates a prolonged downturn in the petrochemical cycle because of increased imports, which has reduced its polymers market share in Brazil from around 60pc to a little over 40pc in the past two years, Ramos said. To address this, Braskem announced strategic initiatives, including asset rationalization, higher import tariffs and anti-dumping investigations against polyethylene from the US and Canada, and potentially polypropylene from China. "The anti-dumping investigation against polyethylene produced in the US and Canada is in its early stages," Ramos said. "We advocate for this action in Braskem's best interest." Ramos expects a slight improvement in domestic polymer demand this year, and has already seen some improvement in January, but he does not anticipate a significant increase in plant utilization from the current 72pc. 4Q production and sales Braskem's domestic resin sales reached 3.34mn metric tonnes (t) in 2024, flat year-over-year. Fourth quarter domestic resin sales fell by 7pc from the prior period but increased 3pc from a year earlier. Combined 2024 resin sales in the US and Europe decreased by 7pc. Mexico sales rose by 5pc year-on-year. The company's profit margins for resins and chemicals in Brazil and for polyethylene (PE) in Mexico increased last year. Marginsfor polypropylene (PP) in the US and Europe also increased in 2024. Braskem's average plant utilization rate at domestic operations was at 72pc last year, up from 71pc in 2023. Braskem's combined US and Europe PP plant utilization rates hit 74pc, down by seven percentage points year-on-year and down by nine percentage points quarter-on-quarter. In Mexico, Braskem Idesa's plant utilization rate increased to 77pc this quarter, up by three percentage points from the quarter before. The rise was driven by more ethane supply from state-run oil company Pemex and the end of a scheduled maintenance shutdown. The company's plant utilization rate rose by one percentage points from the previous year, reaching the highest annual utilization rate since 2017 due to the greater availability of ethane. Braskem reported a $2.2bn loss in 2024, widening from a loss of $935mn in 2023. By Frederico Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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