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.
US spot PGP falls to lowest since November
US spot PGP falls to lowest since November
Houston, 17 April (Argus) — US prompt-month spot polymer-grade propylene (PGP) fell this week to the lowest in nearly five months on weak domestic demand for some smaller volume propylene derivatives, especially acrylonitrile (ACN) and propylene oxide (PO). US PGP traded on Tuesday at 41.5¢/lb, down by 30pc since 5 March and the lowest price since late November. US PGP's pricing in recent years has mostly been driven by supply changes, but market participants believe that some of the price drop since early March stems from weakness in PGP's smaller demand sources like ACN and PO. ACN consumes about 7pc of US propylene, declining from 10pc over the last six years, and PO accounts for around 11pc of US demand for propylene. US demand remains weak for polypropylene (PP), which accounts for about half of domestic PGP demand, but has increased over the last few weeks, with operating rates improving. Rising PGP demand has been offset by falling production of smaller volume derivatives like ACN and PO, largely driven by elevated PGP spot prices in the first quarter that narrowed margins. Cornerstone's 257,000 metric tonne (t)/yr ACN unit in Waggaman, Louisiana, has been down on an extended turnaround, according to market sources. That unit comprises 16pc of the US ACN capacity, according to Argus data. Another producer told Argus that ACN is being produced "to order," as demand has not been steady, saying "these are tough times" for ACN. A PO producer in Texas began a planned turnaround this month that is expected to last until mid-May, reducing demand for US propylene. The turnaround has shut 20pc of US PO capacity, according to Argus data. By Michael Camarda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australian petchem firm Qenos enters administration
Australian petchem firm Qenos enters administration
Singapore, 17 April (Argus) — Australian olefins and polyethylene (PE) producer Qenos has entered into voluntary administration following a cash liquidity crunch. Australian advisory firm McGrathNicol has been appointed as voluntary administrators, with its first meeting with creditors, including employees, expected to be held on 30 April. A follow-up meeting will be held for the administrators to present the results of their investigation into the Qenos Group and offer recommendations. Qenos was formerly a joint venture between China's state-controlled ChemChina and US private equity group Blackstone. Qenos' new owner LAOP BidCo will provide funding to the voluntary administrators, employee wages and other necessary costs to shut the Botany plant in New South Wales. Qenos was "unable to confirm whether there will be sufficient assets available to meet employees' pre-appointment claims", in a circular released to employees. Qenos operates a 250,000 t/yr ethane cracker, a 90,000 t/yr low-density PE plant and a 130,000 t/yr linear low-density PE/high-density PE (HDPE) swing plant at Botany. Qenos stopped its ethylene and PE production at Botany in February 2023 after damage to a cooling water tower at its olefins complex. Qenos earlier planned to restart its Botany ethylene and PE plants in phases from late January this year but this failed to materialise. It separately in 2021 closed and mothballed one of its two ethylene units and one of its two 100,000 t/yr HDPE units in Altona, Victoria. This came after the closure of ExxonMobil's 90,000 b/d Altona refinery in August 2021 that supplied feedstock to Qenos' Altona cracker. No decision has been made on Qenos' ethylene and PE plant in Altona. Qenos' distribution arm eXsource will continue to operate normally. It supplies a range of polymers manufactured by Qenos, Bluestar, LyondellBasell and others within the domestic Australian market. By Yee Ying Ang Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Dow restarting Freeport polyethylene unit
Dow restarting Freeport polyethylene unit
Houston, 15 April (Argus) — Dow today began the start up of its Polyethylene 4 unit in Freeport, Texas, following an earlier shutdown, according to a filing with the Texas Commission on Environmental Quality. The restart is expected to continue through 18 April, resulting in some ethylene emissions. The shutdown occurred following a decomposition reaction at the unit. It was not immediately clear how long the unit has been down or whether there has been a loss of production. The company did not immediately respond to requests for comment. Dow has approximately 1.685mn t/yr of total PE capacity at its Freeport plant. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Sabic to begin Geleen cracker closure this week
Sabic to begin Geleen cracker closure this week
London, 11 April (Argus) — Saudi state-owned petrochemicals company Sabic will begin work at the end of this week to disconnect and permanently close one of the two steam crackers at its petrochemicals site in Geleen, Netherlands. The steam cracker to be closed, Geleen 3, cracks naphtha/condensate feedstock with a small flexibility to crack propane and butane. The steam cracker has a nameplate ethylene production capacity of 550,000 t/yr and chemical grade propylene capacity of 260,000 t/yr. Five other units will also be shut down at the site during a three-month maintenance period, the company said, although it did not give further details. Sabic said that the closure is "part of the strategic reorientation of the site based on careful evaluation and market conditions and enables Sabic to prepare the Geleen site for future success in a competitive market". Sabic operates two steam crackers at Geleen. The other, Geleen 4, has a capacity of 675,000 t/yr of ethylene and 485,000 t/yr of propylene. Both crackers are over 40 years old. Sabic also operates derivative capacities at the site, including 300,000 t/yr of HDPE, 470,000 t/yr of LDPE and 600,000 t/yr of polypropylene. The site also has a 130,000 t/yr butadiene extraction unit. Sabic is also expected to restart its steam cracker in the future at its Wilton site in Teesside in the UK with the company investing in the site to convert the cracker to 100pc ethane feedstock. The cracker was shut in 2020, when it had a capacity of 786,000 t/yr of ethylene production. This is expected to decrease to 450,000 t/yr capacity when the plant restarts production. By George Barsted and Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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