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.
Braskem shifts focus to gas for polymer production
Braskem shifts focus to gas for polymer production
Sao Paulo, 27 February (Argus) — Brazilian petrochemical giant Braskem said it will increase its Rio de Janeiro petrochemical plant's capacity by 220,000 metric tonnes (t)/yr each of ethylene and polyethylene as part of its "switch to gas" efficiency initiative. The company will increase the use of domestic ethane from state-controlled Petrobras and reduce the use of naphtha, which is less competitive because of higher costs, chief executive Roberto Ramos said during the company's 2024 earnings call on Thursday. The company authorized R233mn ($40mn) for the new project's engineering studies and will sign a long-term ethane supply contract with Petrobras. Braskem aims to accelerate this investment, funded by Brazil's special tax regimen (REIQ) resources until the end of 2026, when the REIQ ends. The REIQ reduces the VAT-like PIS/COFINS taxes for the chemical and petrochemical industries and establishes benefits for companies that expand their installed capacity and/or install new plants. The expanded Rio de Janeiro plant is expected to start operations between late 2027 and early 2028. It will maintain current operational levels until then. Furthermore, Ramos said that its plant in Rio Grande do Sul state could also process natural gas, while the Camacari plant in Bahia can operate with a 10pc gas mix, potentially increasing to 20pc. "All Braskem furnaces that crack naphtha can be adjusted to use 20pc ethane and some propane, giving us a competitive edge with minimal investment," he said. Braskem is also considering gas-naphtha blends for its Sao Paulo state operations, but has no immediate plans to increase capacity. Ethane for the Rio de Janeiro plant will be supplied by Petrobras from pre-salt fields, transported via the Rota 3 pipeline, and processed at the Energias Boaventura natural gas-processing unit. A long-term financing contract with Petrobras is being finalized. Petrochemical downturn Meanwhile, Braskem anticipates a prolonged downturn in the petrochemical cycle because of increased imports, which has reduced its polymers market share in Brazil from around 60pc to a little over 40pc in the past two years, Ramos said. To address this, Braskem announced strategic initiatives, including asset rationalization, higher import tariffs and anti-dumping investigations against polyethylene from the US and Canada, and potentially polypropylene from China. "The anti-dumping investigation against polyethylene produced in the US and Canada is in its early stages," Ramos said. "We advocate for this action in Braskem's best interest." Ramos expects a slight improvement in domestic polymer demand this year, and has already seen some improvement in January, but he does not anticipate a significant increase in plant utilization from the current 72pc. 4Q production and sales Braskem's domestic resin sales reached 3.34mn metric tonnes (t) in 2024, flat year-over-year. Fourth quarter domestic resin sales fell by 7pc from the prior period but increased 3pc from a year earlier. Combined 2024 resin sales in the US and Europe decreased by 7pc. Mexico sales rose by 5pc year-on-year. The company's profit margins for resins and chemicals in Brazil and for polyethylene (PE) in Mexico increased last year. Marginsfor polypropylene (PP) in the US and Europe also increased in 2024. Braskem's average plant utilization rate at domestic operations was at 72pc last year, up from 71pc in 2023. Braskem's combined US and Europe PP plant utilization rates hit 74pc, down by seven percentage points year-on-year and down by nine percentage points quarter-on-quarter. In Mexico, Braskem Idesa's plant utilization rate increased to 77pc this quarter, up by three percentage points from the quarter before. The rise was driven by more ethane supply from state-run oil company Pemex and the end of a scheduled maintenance shutdown. The company's plant utilization rate rose by one percentage points from the previous year, reaching the highest annual utilization rate since 2017 due to the greater availability of ethane. Braskem reported a $2.2bn loss in 2024, widening from a loss of $935mn in 2023. By Frederico Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Westlake to start up new specialty PVC plant in 2026
Westlake to start up new specialty PVC plant in 2026
Houston, 25 February (Argus) — Texas-based polyvinyl chloride (PVC) producer Westlake plans to start up a new molecular-oriented PVC plant next year, the company said in its fourth-quarter earnings call. The plant, originally announced in May 2024, is an expansion of its facility in Wichita Falls, Texas. The project will add four production lines to Westlake's existing molecular-oriented PVC production, although the company did not specify its capacity for the new plant or its total capacity for the specialty PVC. Molecular-oriented PVC uses the same materials as standard PVC but has been molecularly stretched to improve tensile-strength, allowing for thinner-walled pipe that has the same pressure capacity as its thicker PVC counterpart. By using less PVC, molecular-oriented PVC also has a reduced environmental footprint. Westlake said it would use the new production to support greater adoption in the municipal pipe sector. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US housing permits tepid in Jan, PVC outlook mixed
US housing permits tepid in Jan, PVC outlook mixed
Houston, 19 February (Argus) — Stagnation in new housing permits in January suggests restrained US housing construction in early 2025 as annual permit and start figures lag the prior year. Domestic PVC market expectations for 2025 did not improve in January, with participants planning for flat to modest increases in consumption for the year as a whole. PVC demand was largely tied to rebuilding inventories rather than end-uses in construction, according to market participants. Most PVC participants did not expect replenished inventories to be immediately used, with some not budgeting for stronger demand until the second half of the year, an expectation which January's slow start to construction activity seems to support. February demand has already plateaued for some PVC buyers, reaffirming the stagnant expectations for resin consumption in the months ahead. January contract prices settled at 57.5¢/lb, a rollover from the previous month due to buyers' underlying demand concerns, according to Argus . Privately-owned housing permits were at a seasonally-adjusted annual rate of 1.483mn units in January, according to data from the US Census Bureau and the Department for Housing and Urban Development (HUD). While January was up 0.1pc from December's rate, it was 1.7pc lower than the year prior and currently stands below the rates of each of the first three months of 2024. If January's lower annual comparison were to extend through the rest of the first quarter, it could set 2025's pace of new housing construction behind the prior year through the early peak building season that lasts from the spring to early summer, as permits serve as a forward indicator for new housing starts. Single-family permits stood at 996,000 units in January, unchanged from December after the rate increased for three straight months. But while the recent uptrend in single-family permits presents a bright spot in the housing construction outlook, January's rate was still 3.4pc below the previous year. Housing starts in January were at a seasonally-adjusted annual rate of 1.366mn units, 9.8pc below December and 0.7pc lower than January 2024. Single-family starts were at a rate of 993,000 units, 8.4pc below December and 1.8pc lower than the previous year. The stagnant month-to-month and lower annual comparisons for permits could extend declining housing starts in the months ahead. The latest builder sentiment survey for February enhanced the mixed forward view of construction activity brought by January's tepid permit rate. February's reading reversed the small uptick in sentiment registered in January, falling back five points to 42, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). February's result was the lowest level in five months and reflected builders' increasing anxiety about the construction market's outlook. Any reading below 50 denotes a weak market environment. NAHB Chairman Carl Harris said that builders were still hopeful that regulatory reform could spur development, but uncertainty over tariffs and high housing costs was resetting 2025 expectations in February. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Indonesia mulls anti-dumping duties on PP co-polymer
Indonesia mulls anti-dumping duties on PP co-polymer
Singapore, 14 February (Argus) — The Indonesian Anti-Dumping Committee (KADI) on 12 February proposed the imposition of anti-dumping duties (ADDs) on the imports of polypropylene (PP) co-polymer from five origins. This follows an 18-month investigation since August 2023 . The proposed ADDs for products under the HS code 39023090 are pending review by the Indonesian trade ministry. Market participants expect an outcome around the second quarter of this year. The affected exporters from South Korea, Singapore, Malaysia, Vietnam and the UAE, as well as several local Indonesian importers have been asked to submit relevant data and provide their responses during the investigation period. Imports from these five countries made up 84pc of Indonesia's PP co-polymer imports in 2022 – the year which is being investigated for dumping activity. KADI has proposed the below ADDs to be imposed on PP co-polymer imports into Indonesia, with rates varying depending on the exporter and country of origin. Exporters from South Korea: 7.17-19.58pc Exporters from Vietnam: 11.4pc Exporters from Malaysia: 13.45-29.01pc Exporters from Singapore: 11.6-13.06pc Exporters from UAE: 21.02pc Exemptions will be given to the imports of selected PP co-polymer grades including random co-polymer, terpolymer, elastomer and block co-polymer with specific parameters, according to an official notice seen by Argus . These grades are likely not produced locally or different from local supplies in terms of specifications and end usage. The ADDs are proposed to be valid for five years upon enforcement. More protectionism measures underway KADI began the PP co-polymer anti-dumping investigation in 2023 prompted by Indonesia's largest petrochemical producer, Chandra Asri, which is also the sole producer of PP co-polymer in the country. The Indonesian Trade Security Committee also began an anti-dumping investigation into imports of linear low-density polyethylene (LLDPE) under the HS code 39011092 in September last year , targeting several LLDPE importers based in Indonesia, but it is unclear how long the investigation will take. Chandra Asri also sought the imposition of anti-dumping measures for the imports of PP homopolymer under the HS code 39021040 into Indonesia in October last year and an investigation is ongoing, according to market sources. Growing PE and PP oversupply globally and weak regional downstream consumption in the past few years have led to higher imports, pressuring regional prices and leading southeast Asian producers to seek measures from local governments to protect their domestic market share. But the imposition of ADDs or any additional safeguard duties is likely to result in higher costs of locally manufactured plastic goods, which will in turn be passed on to consumers. By Yee Ying Ang Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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