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.
Brazil 1Q PE imports hint at shifting trade patterns
Brazil 1Q PE imports hint at shifting trade patterns
Sao Paulo, 25 April (Argus) — Brazilian polyethylene (PE) imports totaled 459,173t in the first quarter of 2025, down 20.3pc when compared with the 515,063t imported during the same period in 2024. The five major PE exporters to Brazil during the first quarter of 2025 were the US, Argentina, Canada, Saudi Arabia and Egypt. Leading the pack, the US shipped 310,861t, a 9pc year-on-year decrease. The decline is expected to continue in the second quarter as Brazilian buyers are avoiding any risk coming from the uncertainties caused by US president Donald Trump's tariffs. Argentina followed with 65,025t, a 9pc increase compared with a year earlier, showing that buyers are increasingly looking for different sources for the resin. One source in Argentina confirmed to Argus that the local PE producer is running at higher rates and exporting to Brazil all of the excess that could not be absorbed internally in Argentina. Canada, with shipments of 19,379t, down by 40pc, and Saudi Arabia with 10,541t, a volume 47pc lower than the first quarter of 2024, also lost market share. Imports from Egypt grew significantly to 8,993t in the first quarter, up from 342t in the same period in 2024. Egyptian PE does not pay 20pc import taxes when entering Brazil. Egypt's percentage growth in the Brazilian PE market was followed by Mexico, with a 664pc increase in shipments, possibly intra-company exports from Brazil's resin manufacturer Braskem's subsidiary in Mexico, and by the Netherlands, with shipments up by 278pc year-on-year at 4,046t. The trade shifts in the first quarter could show the start of a change in trade dynamics in the Brazilian PE market following disruptions caused by Trump's tariff policies announced on 2 April. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Dow delays Path2Zero ethylene project in Canada
Dow delays Path2Zero ethylene project in Canada
Houston, 24 April (Argus) — Dow is delaying construction in Canada of its Path2Zero project, designed to produce 1.9mn metric tonne (t)/yr of low-carbon ethylene, until "market conditions improve", the company said today. The company decided to delay work at its Path2Zero project site in Fort Saskatchewan, Alberta, in light of uncertainty around US tariffs and potential retaliatory tariffs by US trading partners, especially their impact on product demand, the company said Thursday on its first-quarter earnings call. Path2Zero, designed to produce ethylene and derivatives with net-zero carbon emissions, was announced in October 2021 and was originally planned for a first-phase start-up in 2027 and a second phase in 2029. The first phase was meant to coincide with an expected upturn in the business cycle. But tariffs have increased uncertainty to the point that Dow said it cannot be sure of a recovery in two years. Chief executive Jim Fitterling described the current market environment as "one of the most protracted down-cycles in decades", compounded by geopolitical and macroeconomic concerns that further weigh on demand. The Path2Zero project delay will save $600mn in 2025, accounting for 60pc of the company's plan to cut capital spending this year by $1bn from the company's original $3.5bn spending plan. The pause comes before a ramp up in construction labor and allows the company to see how tariffs effect global demand and supply chains. "We are at a point right now where we can make this decision to have minimal impact on the project," Fitterling said. "We've done a lot of groundwork, we're finishing our engineering work, and we've got our long lead time items ordered." Despite the delay, Dow remains committed to the project in the long-term. The project will one day capture upside in demand for targeted applications like pressure pipe, wiring cable and food packaging, the company said. When complete, the project is expected to generate approximately $1bn/yr in incremental earnings. Even with the delay, it is still likely to be the world's first integrated ethylene complex to achieve net-zero Scope 1 and 2 emissions. To restart the project, Dow said it would have to start seeing supply and demand balances tighten. The company said it would next revisit restarting the project at the end of 2025. Without a green light by year's end, Dow said it would review a project restart "on a regular basis". The project would triple the site's ethylene and polyethylene (PE) capacity. In total, the site would produce approximately 3.2mn t/yr of low-to-zero emissions PE and other ethylene derivatives. The first phase startup in 2027 was to have brought on 1.3mn t/yr of ethane-derived ethylene and PE, and the second phase in 2029 was to bring on an additional 600,000 t/yr of ethylene and PE. The site will also convert cracker off-gas into hydrogen to be reused as a clean fuel in the production process. The project is designed to capture CO2 emissions for storage by adjacent third-party infrastructure. By Michael Camarda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Dow studying German cracker and chlorine/vinyl closures
Dow studying German cracker and chlorine/vinyl closures
London, 24 April (Argus) — Dow has announced an expansion of its strategic review of European assets, which it said may result in the potential idling or shutdown of its cracker in Boehlen, Germany, chlor-allkali and vinyl assets in nearby Schkopau, also in Germany, and the shutdown of siloxanes production in Barry, UK. The company aims to complete the review, including the initial scope of its polyurethanes business by mid-year. The European actions are part of a package of measures aimed at delivering $6bn in cash support to help it manage the current downturn. Outside Europe, Dow said that it would also delay construction of its Path2Zero project in Fort Saskatchewan, Alberta, Canada until market conditions improve. The total includes $1bn in costs savings by 2026, $1bn in capital expenditure savings and proceeds from the sale of a stake in a newly-formed infrastructure-focused company resulting in the sale of a minority stake in select US Gulf Coast infrastructure assets. The measures were announced as Dow reported first quarter 2025 results with a net loss of $290mn, down by $444mn year on year, primarily driven by lower prices and higher energy and feedstock costs. Sales of $10.4bn were down by 3pc on the year but with a volume increase of 2pc. Dow chief executive Jim Fitterling said: "The significant impact of slower GDP growth and volatile market conditions on our industry underscores the importance of our proactive management and best-owner mindset. Today's announcements build on Dow's cost actions that are already underway, aiming to further strengthen our financial flexibility and support a balanced capital allocation approach." Dow's cracker in Boehlen has an annual ethylene nameplate capacity of 540,000 t/yr, with propylene capacity of 285,000 t/yr. The review comes in the same week that TotalEnergies announced a plan to close one of its Antwerp crackers by the end of 2027. LyondellBasell, which is also reviewing a number of European chemical assets, will announce its first quarter 2025 results tomorrow. At Schkopau, Dow operates a chlor-alkali unit with 250,000 t/yr chlorine capacity and 740,000 t/yr ethylene dichloride capacity. The site previously had around 330,000 t/yr of capacity for chloride monomer (VCM) production, with two lines operating at the site, but Dow closed the larger of the two lines to reduce capacity to roughly 110,000 t/yr of VCM earlier this year. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
TotalEnergies plans Antwerp cracker closure
TotalEnergies plans Antwerp cracker closure
London, 22 April (Argus) — TotalEnergies has announced plans to close one of the two crackers at its integrated refining and petrochemicals complex in Antwerp, Belgium by the end of 2027. The Antwerp complex is "facing considerable overcapacity in the petrochemicals market", the firm said. The company does not expect to close any downstream petrochemical units at Antwerp and stressed that the cracker is not integrated into its own downstream polymer production. Rather, its exposure to the merchant market has contributed to the closure, with the company highlighting the non-renewal of a major third-party ethylene contract by the end of 2027 as the main driver for the announcement. The unit marked for closure has a nameplate ethylene capacity of 570,000 t/yr and propylene capacity of 255,000 t/yr. It mainly runs on naphtha but has some flexibility to use propane and butane as feedstock. The planned closure will come shortly after the expected start-up of a new 1.45mn t/yr ethane cracker in Antwerp being built by UK-based Ineos. TotalEnergies said it will focus on its other Antwerp cracker, which has 600,000 t/yr of ethylene capacity and is fully integrated with similar-capacity polyethylene units at Antwerp and Feluy. While the closure will not impact TotalEnergies' internal ethylene balance, it will tighten internal propylene supply for the company's 930,000 t/yr polypropylene capacity at Feluy. The cracker closure is part of wider plans for the Antwerp complex announced today, which include wind power, electrification and battery storages and sustainable aviation fuel production. By Alex Sands Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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