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.
Vioneo to shift planned MTP plant to China
Vioneo to shift planned MTP plant to China
London, 19 January (Argus) — Chemical start-up Vioneo has decided to build its planned 300,000 t/yr methanol-to-polymers (MTP) plant in China instead of Europe, saying a location close to green methanol supply will "enable pricing that works … and a faster route to market". The China site will use the same technology partners, product specifications and sustainability commitments as the proposed European project. Production is likely in 2029-30, with capacity unchanged at 200,000 t/yr of polypropylene and 100,000 t/yr of polyethylene, the company said. A spokesperson said Vioneo — a subsidiary of Denmark's Moller Holding — is "pulling out" of Europe for now but may return to build polymer capacity on the continent in future. The firm's priority is to bring "fossil-free plastics to market as quickly as possible", the spokesperson said, adding that moving to China will allow the company to be more competitive on pricing. Vioneo has already signed preliminary supply deals with buyers and said it can serve these global customers from Asia rather than Europe. Vioneo had previously planned to build its first commercial-scale unit in Antwerp, Belgium. Last month it said this plant would start up in 2029, using green methanol sourced from agricultural and forestry residues that do not compete with food production. But it also noted at the time that Europe lacked sufficient feedstock and that supply might need to come from Asia. The China plant will also use agricultural and forestry residues as feedstock, the spokesperson said. The company last month welcomed the European Bioeconomy Strategy, which aims to support the use of bio-based plastics and novel materials by 2027 alongside recycling. Vioneo said the strategy would "create real advantages" for its customer base. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Viewpoint: US recycled polymers under pressure
Viewpoint: US recycled polymers under pressure
Houston, 2 January (Argus) — The US recycled polymers market enters 2026 under pressure from weak demand, low costs for virgin resin and fragmented policy signals. With no federal recycled-content mandate on the horizon, state programs remain the leading driver of compliance, while a pending Oregon legal challenge adds fresh uncertainty. The US recycling market lacks unified recycled content requirements, and most of the country is still operating in the absence of less-stringent measures such as extended producer responsibility (EPR) and deposit return schemes (DRS) for plastic packaging. In addition, momentum for a national sustainability initiative has stalled during the administration of President Donald Trump, which has repeatedly shown little interest in — and has even actively eschewed — climate initiatives across the board. With recycling legislation deprioritized, expectations are growing that state-level rules will shape demand in 2026. Oregon's Plastic Pollution and Recycling Modernization Act, which introduced EPR requirements in 2021, will face a pivotal legal test in early 2026. The National Association of Wholesaler-Distributors (NAW) has requested a preliminary injunction, with a hearing scheduled for 14 January before the US District Court. NAW argues that the law forces producers and distributors to contract with a single entity, violating constitutional limits on interstate business. The ruling could reshape the national EPR landscape. If NAW prevails, enforcement in Oregon may be delayed, or the program may be redesigned, which would weaken investments in state-led recycling mandates. An unfavorable ruling for Oregon could also encourage opposition to similar programs, jeopardizing Washington's newly adopted ERP law and stalling EPR legislation in New Jersey. But if Oregon's law withstands the challenge, it could secure funding for recycling infrastructure and strengthen momentum for EPR programs nationwide. Legal uncertainty adds to the structural challenges already weighing on recycled plastics. Many US recyclers have shut down facilities as low-cost imports and oversupplied virgin material weaken margins. Major plants such as rPlanet Earth and Evergreen in California, and the PET recycling affiliate of Alpek in North Carolina, all shuttered in 2025, and WM's Natura location idled its Texas film recycling plant. Market sources say recyclers lack incentives to invest amid weak demand signals. In addition to a lack of urgency in policy, the recycling industry has seen a rollback in voluntary initiatives from end-users, with several brand owners retreating on their sustainability goals. This year, PepsiCo reduced its previous target of 50pc of recycled content in its plastics by 2030 to 40pc by 2035. PepsiCo's reduced target follows Coca- Cola's shift in 2024 from 50pc recycled content by 2030 to 35-40pc by 2035. The brands will point out — in many cases justifiably — that they are unable to obtain sufficient recycled material to hit their targets, particularly in the case of non-PET food contact packaging where the choice of materials is severely restricted by local safety laws. The additional cost of packaging-quality recyclates, compared with virgin material, is also very likely to be another factor in the current business environment in which many brands are discussing cost-saving initiatives. From the recycling industry's perspective, this illustrates that voluntary commitments alone are not enough to drive investment in the industry. Unless federal action is implemented, state-level uncertainty and voluntary corporate initiatives will leave recycled plastics demand vulnerable through 2026. The legal outcome in Oregon will set the tone for EPR mandates nationwide. The US recycled plastics market enters 2026 at a crossroads, awaiting legislative clarity that could determine whether sustainability goals will gain the necessary momentum or risk further deterioration. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Viewpoint: Brazil tightens grip on polymer imports
Viewpoint: Brazil tightens grip on polymer imports
Sao Paulo, 29 December (Argus) — Brazil's growing dependence on polymer imports and its record trade deficit in 2025 have placed domestic producers and policymakers under mounting pressure, prompting a wave of protective measures, a trend expected to continue into 2026. Conditions for Brazilian polyethylene (PE) producers remained as challenging in 2025 as in 2024. PE imports totaled $1.49bn in January-November, only 1.5pc lower than the $1.51bn in the same period of 2024, while volumes rose slightly to 1.34mn metric tonnes (t) from 1.32mn t, according to Comexstat data.The marginal improvement in value reflects global price decreases rather than any structural shift in sourcing, underscoring persistent pressure on domestic producers. The backdrop to these difficulties was 2024, when Brazil posted its largest-ever annual polymer trade deficit. Imports of PE, polypropylene (PP) and polyvinyl chloride (PVC) surged as global supply expanded and domestic capacity remained constrained. Even after Brazil raised overall polymer import tariffs to 20pc from 12.6pc in October 2024, inflows continued to climb. These developments triggered the protective measures in 2025 that are likely to intensify in 2026. Braskem, Brazil's leading producer, reported a further $51mn in losses in the first nine months of 2025, fueling calls for government intervention. In response, Brazil imposed provisional anti-dumping duties on US and Canadian PE in August 2025 — $199.04/t for US-origin and $238.49/t for Canadian-origin resin — valid for six months. These measures were introduced by foreign trade council Gecex/Camex and are now under review by the department of trade defense Decom, with a final decision expected in early February. So far, these measures have had limited impact because preliminary duties can be suspended or refunded if overturned. Final duties, also expected in February, would lock in higher costs permanently, reducing pricing uncertainty and forcing buyers to seek alternative supply sources. Market participants are monitoring whether permanent tariffs will alter procurement strategies, particularly for large converters. Despite the new anti-dumping duties, the US remained Brazil's top PE supplier in January–November 2025, accounting for 66pc of volumes, down from 71pc one year earlier. Argentina expanded its share to 14.8pc from 10.9pc, with shipments rising to 199,415t. Canada maintained a smaller share, while other suppliers such as Colombia and Mexico continued to serve niche segments. Beyond PE, Brazil raised anti-dumping tariffs on US suspension-grade PVC to 43.7pc in May 2025, up from 8.2pc previously. This move effectively displaced US suppliers, opening space for Colombian and Argentine producers to increase their presence in the Brazilian PVC market. PP imports also remained elevated through 2025, with volumes stable from 2024 despite tariff adjustments. Domestic PP production continued to operate below capacity, reinforcing Brazil's reliance on imports for key downstream sectors such as packaging and automotive components. Looking ahead, Brazil's trade defense momentum is set to intensify through 2026. Participants expect the government to maintain a protectionist stance to restore competitiveness and narrow the polymer trade deficit. Additional investigations into other polymer grades and potential safeguard measures are under discussion. For downstream users, the evolving tariff landscape will require adjustments in sourcing strategies and cost management as Brazil seeks to rebalance its polymer markets. By Fred Fernandes and Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Japan’s petchem firms finalise polymer integration plan
Japan’s petchem firms finalise polymer integration plan
Tokyo, 24 December (Argus) — Japanese petrochemical producers Sumitomo Chemical and Prime Polymer have finalised their contract to integrate Sumitomo's polyolefin production businesses with Prime Polymer, aiming to enhance the competitiveness of their polyolefin businesses. Prime Polymer — a joint venture between petrochemical firm Mitsui Chemicals and refiner Idemitsu — will merge Sumitomo's domestic polypropylene (PP) and linear low-density polyethylene (LLDPE) businesses on 1 July 2026, the companies said on 24 December. Sumitomo's PP and LLDPE production-related assets will be integrated into Prime Polymer later on 1 April 2027, as the system integration will take some time after the business merger, the companies said. After the integration, Prime Polymer will have a production capacity of 1.59mn t/yr for PP and 720,000 t/yr for PE in Japan. Mitsui will hold a 52pc share in Prime Polymer and Idemitsu will have 28pc, with Sumitomo newly acquiring 20pc in exchange for the integration of its polyolefin businesses into Prime Polymer. Currently Mitsui and Idemitsu hold a 65pc and 35pc share in Prime Polymer respectively. Prime Polymer has a production capacity of 1.26mn t/yr for PP and 550,000 t/yr for PE in Japan currently. Demand for domestically produced polyolefins will continue to decline because of shrinking domestic demand, population decline and changing lifestyles, the companies said. The companies aim to optimise their polyolefin businesses and achieve annual cost savings of over ¥8bn/yr ($51mn/yr) through this business integration. Idemitsu, Mitsui and Sumitomo first announced this integration plan in September. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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