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.
India extends BIS deadline for PVC imports to December
India extends BIS deadline for PVC imports to December
Singapore, 26 August (Argus) — India has extended the implementation of Bureau of Indian Standards (BIS) quality controls on polyvinyl chloride (PVC) homopolymer imports into India from 26 August to 24 December 2024. The notice was published in the Gazette of India on 23 August. The initial proposal from India's Department of Chemicals and Petrochemicals (DCP) was submitted on 11 August 2023 , with an implementation date of 26 August communicated to the wider market in February 2024. As of this month, only 12 PVC production units outside of India are currently listed as being BIS-certified, meaning they would be able to supply PVC into India after the BIS deadline, but many other key exporters to India are still waiting for their certification to come through. Some are expected to receive their certification in September, but the majority of production units that typically export to India have yet to be audited by BIS agents as of the time of writing. Indian PVC producers are also required to receive BIS certification before the deadline, with most having already received approval from BIS agents. But the Indian PVC market remains net-short and in need of imports, brewing expectations among most market participants in recent months that an extension to the BIS was likely since most major suppliers had yet to receive approval or audits. Further upstream, market participants are currently waiting for BIS quality controls to be applied on imports of ethylene dichloride (EDC) and vinyl chlorine monomer (VCM) — two major feedstocks used to produce PVC in India — on 12 September. Changes in import shares The Indian PVC market recorded historically high import demand in 2023, with imports totalling over 3.2mn t/yr, according to GTT data. Latest trade data for 2024, which only indicates imports between January and June, shows that India has imported over 1.5mn t/yr of PVC as of June, just under the halfway mark for 2023. Most origins recorded growth in India's PVC import share in 2023, with the most notable being China, North America and the remainder of northeast Asia. The share of imports from northeast Asia — excluding China — into India grew by 47pc in 2023, while China almost doubled its import share, and North America almost tripled this during the same time period. PVC import growth from China in 2023 and 2022 was mainly denoted by higher carbide-based PVC imports into India, which tends to be cheaper than conventionally and globally produced ethylene-based PVC. BIS quality controls on PVC imports will effectively remove supply of PVC containing a residual VCM content above two parts per million, which is common in carbide-based PVC specifications. An extension of BIS quality controls on PVC could potentially bode well for total import growth into India in 2024, with the potential for similar results as 2023, as the country estimates PVC consumption in the construction and agricultural sectors to remain strong in the coming years. But the possibility of further PVC import restrictions remains likely in the medium-term, as new Indian PVC production capacities are set to come on line between 2026-30. In a separate investigation, Indian authorities are looking to implement potential anti-dumping duties on suspension PVC (s-PVC) imports into India , but the result of this investigation has yet to be finalised. This could potentially restrict import growth from North America, northeast Asia and other major export origins, creating more competitiveness for imports into India as the country looks to become self-sustained on PVC supply. By Michael Vitiello India's PVC imports '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India extends anti-dumping duties on c-PVC imports
India extends anti-dumping duties on c-PVC imports
Singapore, 26 August (Argus) — India's Ministry of Finance has recommended continuing anti-dumping duties (ADDs) on chlorinated polyvinyl chloride (c-PVC) imports from China and South Korea, citing continuing imports below market value threatening the domestic sector. The recommendation was published in the Gazette of India on 23 August, with ADDs to be applied to all c-PVC imports from China and South Korea either in compounded form or unprocessed form. ADDs under this notification can be levied for a period of five years, unless revoked, superseded or amended earlier from the date of publication in the Gazette of India. An initial anti-dumping investigation began in March 2019, followed by final findings and initial ADDs on c-PVC imports from China and South Korea on February 2020. Indian producers noted continuing dumping of c-PVC resin following expected demand growth from the agricultural and construction sectors. But authorities said, despite new production capacity planning to come on line in India in the coming years, that the likelihood of further dumping would remain high should ADDs be removed too soon. India has already implemented ADDs on paste PVC imports on 13 June, while continuing to investigate anti-dumping of suspension PVC imports . C-PVC is produced by the addition of chlorine to standard PVC resin, with the final compound having greater resistance to higher temperatures, fire and corrosion compared with traditional PVC. C-PVC is primarily used in pipe applications. By Michael Vitiello India c-PVC ADDs Country of origin Country of export Producer Specification Duty ($/t) China Any Any CPVC resin 790 China Any Any CPVC compound 605 Any China Any CPVC resin 790 Any China Any CPVC compound 605 South Korea Any Hanwha Solutions Corporation CPVC resin 593 South Korea Any Hanwha Solutions Corporation CPVC compound 792 South Korea Any Any CPVC resin 593 South Korea Any Any CPVC compound 792 Any South Korea Any CPVC resin 593 Any South Korea Any CPVC compound 792 Source: Ministry of Finance Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Shintech mulls new Louisiana ethane cracker
Shintech mulls new Louisiana ethane cracker
Houston, 20 August (Argus) — Shintech, a subsidiary of Japan's Shin-Etsu Chemical, has submitted an air permit for the construction of a new 500,000 metric tonne (t)/yr ethane cracker in Plaquemine, Louisiana. If the cracker receives approval and the company makes a final investment decision (FID), construction would begin in late 2024 and have a start-up target of fall-to-winter 2027. One of largest polyvinyl chloride (PVC) producers in the world, Shintech, already operates a 500,000 t/yr ethane-propane cracker in Plaquemine that feeds into its on-site PVC production. The company seeks to expand its PVC production and also submitted air permit applications for a new vinyl chlorine monomer (VCM) facility (Shintech Plaquemine Plant-4) that follow the same construction schedule as the new ethane cracker. The permits now await approval by the Louisiana Department of Environmental Quality (LDEQ). Shintech's new potential cracker, named the Plaquemine Ethylene Plant-2 (PEP-2), is the second new cracker announcement for the US Gulf coast since the Covid-19 pandemic put many projects on ice. ChevronPhillips Chemical and QatarEnergy announced in November 2022 their intention to go ahead with construction of a new 2.08mn t/yr ethane cracker and two 1mn t/yr high-density polyethylene (HDPE) units in Orange, Texas. Those three units are expected to begin operations in 2026 under a JV agreement between the two companies named Golden Triangle Polymers. By Michael Camarda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Vietnam’s Long Son starts up PE, PP plants
Vietnam’s Long Son starts up PE, PP plants
Singapore, 20 August (Argus) — Vietnam's Long Son is expected to start up its polyolefins plants from this week, after restarting its mixed-feed cracker , which can produce up to 950,000 t/yr of ethylene and 400,000 t/yr of propylene, last week. The producer has started up its new 500,000 t/yr high-density polyethylene (HDPE) plant and new 400,000 t/yr polypropylene (PP) plant from early this week and both plants are likely to be producing on-specification products, according to sources close to the company. Its new 500,000 t/yr linear low-density polyethylene (LLDPE) plant is expected to start up within the week as well. The producer began offering prime-grade HDPE film and PP raffia supplies to domestic Vietnamese and export markets for September shipment on 20 August, according to market sources. The start-up of Long Son's PE and PP plants is expected to add supply length and exert pressure on regional prices. Argus assessed the southeast Asian duty-free HDPE film prices at $990-1,010/t cfr southeast Asia on 16 August, unchanged from the previous week. The southeast Asian duty-free PP raffia prices were at $970-990/t cfr southeast Asia on the same assessment week, down by $20/t from the previous week. Long Son shut its cracker and downstream derivative units to address equipment issues on 21 February. The producer was previously expected to restart its petrochemical complex in June , but later delayed its start-up to August. By Yee Ying Ang Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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