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.
Chinese carbide PVC could temper US exports to Asia
Chinese carbide PVC could temper US exports to Asia
San Antonio, 31 March (Argus) — US suspension-grade polyvinyl chloride (S-PVC) prices have risen sharply since the onset of the Mideast Gulf war, driven by soaring international demand. But US exporters will have to compete with cheaper carbide-based PVC production in China, which may temper total exports into Asia. US S-PVC export prices rose to a $1,000-1,050/t fas Houston range during the week ended 27 March, up by just over 55pc from 27 February, the day before the conflict broke out in the Mideast Gulf, according to Argus data. Chinese carbide-based S-PVC prices rose to a $815-900/t fob China range at the end of March, up by only 36.1pc during the same period. Carbide-based PVC, derived from coal instead of ethylene, is cheaper to produce and is insulated from supply shocks to oil and natural gas. US export demand could erode because of this, as Chinese carbide-based exports become relatively cheaper than US ethylene-based PVC, according to participants on the sidelines of the American Fuel & Petrochemical Manufacturers' International Petrochemical Conference in San Antonio, Texas, this week. More than 80pc of Chinese integrated PVC production is carbide-based, according to Argus estimates. Chinese carbide-based operating rates are estimated by Argus at around 68pc. In fact, a further 10pc hike in operating rates to meet growing demand could replace all of the more expensive US ethylene-based exports. The US exported 621,050t of PVC to Vietnam in 2025, comprising 11pc of all US exports that year and making Vietnam the US' second-largest global buyer outside of Canada. This demand could be captured by Chinese exports if carbide-based prices in China remain more competitive to buyers than US ethylene-based. Additionally, this could dampen domestic prices for US producers, who — outside of ethylene costs, which have risen by 66pc since the beginning of the war — are comparatively insulated from rising energy costs in Asia and Europe. However, US exporters could pivot to shipping ethylene dichloride (EDC) instead of PVC. Feedstock EDC from the US is already in great demand from producers in India and could be used as an alternative to lower-quality carbide PVC, which has limited applications. By Gordon Pollock and Nicole Johnson Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Gulf war may push beverage prices up
Gulf war may push beverage prices up
Houston, 28 March (Argus) — Two of the world's largest beverage makers warn that higher costs to their operations from the war in the Mideast Gulf — including higher prices for polyethylene terephthalate (PET) bottles — may soon be passed onto consumers. Both PepsiCo and Coca-Cola in the past week warned in corporate filings that higher feedstock costs and freight rates stemming from curtailed vessel traffic through the strait of Hormuz could lead to higher prices for their customers. "Our operations … including the distribution of our products and the ingredients of other raw materials used in the production of our products, may be disrupted if such [geopolitical] events persist for a prolonged period of time," PepsiCo said in its 2025 Annual Report, released 27 March. These higher costs could be passed on to customers, reducing "volume, revenue, margins and operating results." Coca-Cola also noted similar sentiments in its 10K filings on 23 March. "Geopolitical instability has in the past led, and may in the future lead, to logistical, transportation and supply chain disruptions," the company said. Some suppliers are located in regions facing that instability, so sustained disruption to manufacturing or product sourcing "... could increase costs and interrupt product supply, which could adversely impact our business." Most bottled drinks are packaged in PET bottles. The PET resin spot price in Europe has climbed significantly since the war started, up by about 65pc since late February. During the week ended 27 March Argus assessed the price at €1,450-1,600/t delivered, up from €890-960/t delivered in late February. One US PET producer has nominated a 10¢/lb increase for March PET resin, up about 17pc from the February contract. PET producer Indorama also announced an additional 5¢/lb war surcharge to all PET resin grades effective immediately in a letter to customers. "Due to the ongoing conflict in the Middle East, there have been significant cost increases in the major and minor raw materials for PET resin, driven by a continuous increase in crude oil price and severe supply chain disruption," according to Indorama's letter. "In addition, there have also been increases in inbound and outbound freight and transportation costs." Container freight costs for PET have increased by 30pc from 27 February to 20 March, closing at $83-103/t from East Asia to the US West coast, according to Argus data. Prices for aluminum, which is also used widely for beverage containers, rose multi-year highs in the first weeks of the war, but they have since fallen due to an unclear global demand outlook and other factors. Packaging costs are generally higher than the liquids they hold for companies such as Coca-Cola and PepsiCo. But they remain a relatively small component in the final costs. Distribution and logistics costs are often higher than the manufacturing costs, which expose these companies to the higher fuel costs caused by the war. By Nicole Johnson Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US styrene exporters move to fulfill supply constraints
US styrene exporters move to fulfill supply constraints
Houston, 27 March (Argus) — US styrene monomer (SM) exporters are working to fill widening supply gaps in Europe following the outbreak of the Mideast Gulf war, which has impeded vessel traffic through the strait of Hormuz and sharply reduced Middle East SM export flows. The global supply constraint has pushed US styrene to a nearly two-year high just days before the start of the American Fuel & Petrochemical Manufacturers' International Petrochemical Conference in San Antonio, Texas, from 29-31 March 2026, where industry participants gather from around the world to discuss pertinent topics in petrochemical markets and construct forward-looking views for the forthcoming year. Producers in the Middle East make up a significant portion of global styrene trade. Saudi Arabia accounts for 44pc of China's SM imports, 40pc of India imports and 33pc of European imports, according to Global Trade Tracker data. Europe has been particularly exposed as shipments through the Mideast Gulf have slowed down. European SM prices have risen by 40pc since the start of the conflict because of tight SM supply, reaching $1,697.50/t on 26 March, according to Argus data. US SM prices increased by 27pc over the same period to $1,450/t, opening the paper arbitrage from the US Gulf coast (USGC) to Europe. Heading into April, US exporters are attempting to secure more vessels for trans Atlantic shipments, but tight tanker availability has created significant export bottlenecks, market participants said. Bulk freight shipping availability from the USGC to northwest Europe and the Mediterranean remained restricted in March, pushing freight rates sharply higher. Estimated shipping costs from the USGC to Europe nearly doubled to around $140/t this week from $72/t in February. Estimated North American SM operating rates ranged from 56-60pc this week, according to a generic Argus model with run rates pegged by market participants. Operating rates have been reduced because of planned maintenance at two USGC SM plants: SABIC and TotalEnergies' joint venture facility in Carville, Louisiana, and Ineos Styrolution's plant in Bayport, Texas. The Carville, Louisiana, unit is expected back on line in early April, potentially lifting regional rates to around 65pc, but US Gulf coast spot availability remains limited. Sources estimate roughly 5,000 metric tonnes of SM is available for April spot sales without producers drawing from their derivative units. Export constraints are compounded by a heavy global turnaround season. At least two US SM units are in planned outages, two Saudi Arabian plants were scheduled for maintenance in March and at least two European feedstock ethylene crackers underwent work in the first quarter. More recently, Saudi Arabian state-controlled petrochemicals producer [Sabic has declared force majeure] (https://direct.argusmedia.com/newsandanalysis/article/2806297) on its methanol and SM sales, effective 26 March, citing logistics disruptions stemming from the ongoing US-Iran war and impeded vessel traffic through the strait of Hormuz. Tight SM supply has begun to filter into downstream markets. Polystyrene (PS) and acrylonitrile butadiene styrene (ABS) producers are entering a seasonably stronger demand period with higher pricing. The impact is expected to ripple through consumer goods such as plastic take-away containers, disposable cutlery, foam packaging and ABS based products including toys and Lego bricks, sources said. As the US and global styrene turnaround season continues, market participants expect inventories to remain tight until domestic maintenance wraps up in the second quarter. Global SM availability is likely to stay constrained while vessel shortages persist and shipments remain restricted through the strait of Hormuz, sources said. By Jake Caldwell Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Braskem to appeal Brazil's AD ruling on US PE: CEO
Braskem to appeal Brazil's AD ruling on US PE: CEO
Sao Paulo, 27 March (Argus) — Petrochemical giant Braskem will appeal the Brazilian government's Thursday decision setting definitive antidumping duties of $199/t on imports of US polyethylene (PE) and $238/t on Canadian grades, chief executive Roberto Ramos said. Ramos said the government, in its 26 March decision, "did not properly assess" the technical evidence presented in the investigation, which runs through 14 May, and reiterated that the local foreign trade chamber of commerce, Camex, had previously recommended duties of $734/t. "The study is very robust and clearly demonstrated predatory pricing by US producers", he said. Ramos also highlighted the sharp increase in feedstock costs stemming from the conflict in the Middle East, especially petrochemical naphtha. Braskem sources most of its naphtha from Brazilian state-controlled Petrobras but still imports volumes from the US, Algeria and the Middle East. "The government should have been more sensitive to our situation," Ramos added. "We are effectively in a state of war", he said, calling the ruling "regrettable". Ramos said Braskem will conduct a deeper review of the government's decision but confirmed the company will move ahead with a formal appeal. Results Braskem's margins narrowed in the fourth quarter as global oversupply and seasonal softness continued to pressure spreads. Recurring earnings before interest, taxes, depreciation and amortisation (Ebitda) fell to $109mn in the fourth quaarter from $150mn in the prior quarter, on thinner resin and chemical spreads and lower sales in Brazil and export markets. Braskem's operations in Brazil and South America remained the largest drag. Cracker utilization dropped to 59pc, a drop of 6 percentage points from the prior quarter, because of scheduled maintenance in Bahia state and reduced feedstock supply to Sao Paulo state. Domestic resin sales fell by 6pc and chemical sales dropped by 15pc from the prior quarter. Segment recurring Ebitda slipped by 30pc to $143mn from the third quarter. At Braskem's operations in the US and Europe, weaker polypropylene (PP) prices, pressured by higher imports in Europe and turnarounds, pushed segment Ebitda to $32mn. Utilization fell to 71pc, a fall of 8 percentage points from the previous quarter, while PP sales eased by 3pc. Mexico was the sole operational bright spot. Utilization at its joint venture there rose to 85pc, an increase of 38 percentage points from the third quarter, as ethane supply normalized with higher imports through the TQPM ethane terminal. PE sales increased by 52pc, while recurring Ebitda remained modest at $11mn. Braskem posted a fourth-quarter loss of $1.9bn, driven mainly by deferred tax asset write offs and other non cash impacts. Full-year 2025 recurring Ebitda totaled $557mn, down by 49pc year on year. Braskem's year-end gross debt reached $9.4bn, with $2.1bn in cash, the company said. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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