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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.
EU imposes s-PVC anti-dumping duties on Egypt, US
EU imposes s-PVC anti-dumping duties on Egypt, US
London, 17 June (Argus) — The European Commission has proposed provisional anti-dumping duties on US and Egyptian- origin s-PVC imports following an investigation. The proposed duties are significant, ranging from 74.2pc to 100.1pc depending on the supplier, and would be applied to the cif import price before customs duties, effectively blocking most imports originating from the two countries. Interested parties have three working days to respond to the pre-disclosure information. The latest date for the commission to implement the provisional measures is 12 July. The EU imported an average of 20,000 t/month of PVC from the US and 4,000 t/month from Egypt in the first three months of this year, out of total imports averaging 52,000 t/month. S-PVC accounts for around 90pc of total imports, according to the original complaint that triggered the investigation. The trade complaint was initiated by three European producers which representing nearly half of EU production — Inovyn, Kem One and Vynova. Under their own analysis, the companies estimate a dumping margin of 40-59pc for US-origin s-PVC and 45pc for Egyptian-origin s-PVC between 1 October 2022 and 30 September 2023. The period in question was when the global PVC market was under significant pressure from weak demand. Other countries have initiated investigations covering the same or similar periods for a variety of exporting countries. A similar trade-remedy investigation on s-PVC imports from the US is underway in the UK. India recently implemented anti-dumping duties on e-PVC imports from China, South Korea, Malaysia, Norway, Taiwan and Thailand. India has also launched an investigation into dumping from China, Indonesia, Japan, South Korea, Taiwan, Thailand and the US during October 2022 to September 2023. Protectionist trade initiatives are on the rise in global chemical markets as weak demand and, in some cases, rising capacity have heaped pressure on many existing producers. Producers, particularly in Europe, have noted the burden of investment needed to meet EU sustainability and decarbonisation targets. In April, the European Commission imposed definitive anti-dumping duties on polyethylene terephthalate (PET) from China. By George Barsted and Alex Sands Provisional anti-dumping duties pc Country Company Dumping Margin Injury Margin Provisional anti-dumping duty Egypt Egyptian Petrochemical Company 109.5 100.1 100.1 Egypt TCI Sanmar S.A.E 86.1 74.2 74.2 Egypt All other companies 109.5 100.1 100.1 US Formosa Plastics Corporation 71.1 90.6 71.1 US Westlake Chemicals 58.0 87.2 58.0 US Oxy Vinyls, LP 63.7 88.3 63.7 US Shintech Incorporated 63.7 88.3 63.7 US All other companies 78.5 90.6 78.5 European Commission Europe and US PVC prices $/t EU-27 s-PVC imports 000t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US PVC export prices rise in early June
US PVC export prices rise in early June
Houston, 14 June (Argus) — Average prices for US polyvinyl chloride (PVC) exports have continued to rise in recent weeks, increasing by $50/metric tonne (t) in just the last two weeks as US exporters expand market share in key regions. Argus assessed export prices in the week ending 14 June between $820-850/t fas Houston. In addition to the reflect the recent price increase, this week's price range is $110/t higher than the start of May, when PVC prices first started to rise. That early May rise in prices coincided with the shutdown of Orbia's 690,000t/yr PVC plant in Altamira, Mexico. The plant has been down since 5 May due to water shortages from an ongoing drought in the region. There has been no public announcement on when operations will resume and there is no clear outlook on when the drought will end, but some market participants suspect it could last deep into the summer. At the same time, Asian producers continue to be challenged by rising freight rates and tight vessel availability, making their PVC offerings less competitive to key markets. In particular, US traders have said exports to Africa, India, and south Asia from northeast Asia have been decreasing. On 10 June, Korean PVC producer LG Chem sent out a letter to its customers informing them about delivery delays due to logistical challenges. In the letter, the company noted a steep rise in ocean freight costs because shipping lines are keeping vessel space significantly tight. The letter also told customers that they may need to help partially cover the added shipping costs by paying an additional $100/t for shipments to be delivered on time, as shipping companies were only agreeing to transport cargo that was covered by these higher upfront costs. US exporters have taken advantage of the supply gaps created from those two issues, and several traders in recent weeks have said buyers around the world would look to the US going forward to provide adequate supply. The result has meant that even with the increase in prices, US exporters have continued to gain traction in Africa and Asia, while shoring up market share in the Americas. While the operating rates in the US have improved, the industry as a whole is still not running at full rates. Domestic demand is still strong according to producers and buyers in the US, a dynamic which could keep export availability tighter in the weeks ahead. This has led some traders to expect further price increases for export volumes in the weeks ahead. By Aaron May and Tasani Stokes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India implements e-PVC anti-dumping duties
India implements e-PVC anti-dumping duties
Singapore, 14 June (Argus) — India's central government has imposed additional anti-dumping duties (ADDs) on imports of paste polyvinyl chloride (e-PVC) from China, South Korea, Malaysia, Norway, Taiwan, and Thailand from 13 June. The implementation comes after Indian authorities concluded investigations on 26 April which found that imports were purchased at dumped prices from these countries. Authorities also noted there was a substantial increase in imports from these countries and concluded that the domestic industry was affected negatively because of this. But the authorities also incorporated exclusions to the ADDs. These were on PVC resins with a K-value below 60K, PVC blending resins, co-polymers of PVC paste resin, battery separator resins and the brand name "Biovyn" produced by European PVC producer Innovyn. The announcement of the ADDs comes at a time when regional freight challenges have been a significant concern for Indian importers. Limited container availability has resulted in South Korean producers Hanwha Solutions and LG Chem postponing shipments of cargoes that were purchased by Indian buyers for arrival in June and early July. The producers sent letters to their customers informing them of the freight challenges. Both producers indicated a raise in prices for shipments, with LG Chem indicating a rise in PVC prices by $100/t. Key Taiwanese PVC producer Formosa was forced to postpone the announcement of its offers for July shipment from this week to next week because of shipping uncertainties, according to market participants. With the lack of imports, Indian producers this week raised domestic prices of suspension-PVC (s-PVC) by 4,000 rupees/t ($48/t) and e-PVC by Rs5,000/t. Offers of Chinese-origin cargoes have been limited, with some s-PVC offers at $930-950/t this week. Chinese producers are trying to circumvent freight difficulties by shipping PVC cargoes in jumbo bags in bulk vessels instead of containers. But acceptance by Indian buyers has been underwhelming, according to market participants. The ADDs will be enforced for a period of six months from 13 June and are payable in Indian rupees. By Matthew Rajendra India e-PVC ADD list $/t Country of Origin Country of export Producer Duty China Any Formosa Industries (Ningbo) Co., Ltd. 546 China Any Shenyang Chemical Co. Ltd 115 China Any Other Chinese producers except above 600 Any China Any 600 South Korea Any Hanwha Solutions Corporation 0 South Korea Any Other South Korean producers 41 Any South Koreaa Any 41 Malaysia Any Kaneka Paste Sdn. Bhd. 317 Malaysia Any Other Malaysian producers 375 Any Malaysia Any 375 Taiwan Any Formosa Plastics Corporation 118 Taiwan Any Other Taiwanese producers 168 Any Taiwan Any 168 Thailand Any TPC Paste Resin Co. Ltd. 195 Thailand Any Other Thai producers 252 Any Thailand Any 252 Norway Any Any 328 Any Norway Any 328 Data from India's Ministry of Finance Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US GSA finalizes new plastics packaging rule
US GSA finalizes new plastics packaging rule
Houston, 11 June (Argus) — The US General Service Administration (GSA) finalized a rule encouraging single-use plastic (SUP) free packaging for supplied and purchased products under Federal Supply Schedule contracts (FSS). The rule will incentivize the reduction of SUP packaging through marketing opportunities on the FSS by using an icon to indicate which products are SUP-free, according to the 6 June rule release by the GSA. The FSS is the primary contracting method for federal buyers and includes more than 14,500 contractors. The rule supports President Joe Biden's Federal Sustainability Plan to lower the federal government's environmental footprint, which includes finding products to decrease plastic waste in consumer supply chains. FSS contractors will be prompted to announce if they offerSUP-free packaging and if that is the default option or if it must be stated. GSA will promote FSS contractors with SUP-free packaging to federal consumers. Feedback on the rule has been mixed. The Center for Biological Diversity, an environmental advocacy organization, said it appreciates the GSA for recognizing the federal government's participation in the waste of single use packaging, but said it does not go far enough. The rule is "underwhelming" and "won't make a dent in the plastic crisis", the organization said in a statement. The Plastics Industry Association, American Fuel & Petrochemical Manufacturers, and the American Chemistry Council released a joint statement with concerns over the new rule. "It suggests that eliminating plastics will be better for the environment in all scenarios — which is fundamentally false," the groups said. The rule has an effective date of 8 July. By Tasani Stokes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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