Heavy olefins
Overview
Global butadiene production and demand are dominated by northeast Asia. Although the region continues to add both supply and derivative projects, there have been market inefficiencies that have resulted in deep sea imports into the region. Accurate and timely analysis will help producers, consumers and traders navigate these turbulent times.
The C5 and hydrocarbon resins industry has experienced a fundamental shift in the past few years, going from several acute shortages to a glut of products in the markets. Producers, industrial chemicals companies, chemical distributors, traders and technology providers all need to understand how this will play out, especially in light of new entries into the global market. Argus’ C5 and Hydrocarbon Resins Service is the only global service of its kind.
Our experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest heavy olefins news
Browse the latest market moving news on the global heavy olefins industry.
Viewpoint: US butadiene demand cools, exports climb
Viewpoint: US butadiene demand cools, exports climb
Houston, 24 December (Argus) — Price support for the US butadiene (BD) market may remain under pressure next year from oversupply concerns, as market participants contend with weak demand, while volumes are increasingly redirected to the seaborne export market. Market participants told Argus that they expect their annual term commitments to stay unchanged in 2026, though some reductions are possible as derivative nameplate capacity shrinks. Most buyers and sellers anticipate demand conditions comparable to this year, which proved weaker than expected, as tariff- and other trade-related headwinds weighed on an already challenging market environment. The permanent closure of three derivative sites in 2025 — Lion Elastomers' synthetic rubber plant in Texas, Ineos Styrolution's acrylonitrile-butadiene-styrene plant in Ohio and Denka Performance Elastomer's chloroprene rubber plant in Louisiana — underscores broad weakness across a host of downstream segments. This follows the earlier shutdown of Invista's adiponitrile plant in Orange, Texas, in 2023. These four assets account for 17pc of US BD consumption capacity lost between 2023-2025, according to Argus Butadiene Analytics data. A combination of rising raw material costs and capital expenditures, low demand and regulatory burdens were cited as severely impacting the profitability of chemical operations. Part of the challenge, in tandem with those factors, stems from an influx of low-cost imports, primarily from Asia-Pacific. The US tariff regime, rolled out in April, has not yet lifted demand and, in some cases, eroded output among US derivative manufacturers. In fact, the White House's trade policy shifts have coincided with the shutdown of BD-based polymer facilities and an absence of new builds. The Institute for Supply Management's purchasing managers' index (PMI) fell to 48.2 in November, its ninth consecutive drop. Chemical products, plastics and rubber products were among the industries reporting contraction. Efforts to stimulate domestic production have failed to deliver a significant upside, leading some US suppliers to more closely match their contract nominations to netback export values. This dynamic has helped to reposition the US as the lowest-cost region, replacing Europe's long-standing advantage. The Argus prevailing US BD contract price (CP) for December settled at 29.25¢/lb ($645/t), the lowest level in over two years. December's settlement shed 19.75¢/lb year-to-date, or 40pc, the tenth consecutive decline. The US BD spot price on a fob basis followed the same pattern, remaining at a discount to the CP in nearly all months over the same period. Market fundamentals reshape trade flows A decrease in US demand for BD has pushed suppliers to lean more heavily on exports to bridge structural gaps, though this strategy has contributed to downward price pressure. US BD exports climbed to record levels this year, totaling 142,100t year-to-date through November, up by 66pc from 85,400t during the same period last year, Argus data shows. Nearly 54pc of these exports headed to Asia-Pacific, the world's largest consuming region. Mexico accounted for 44pc, a trend supported by shifting derivative production from the US to Mexico. Europe received the smallest share at 2pc, although volumes could rise as traders capitalize on the logistical advantages of co-loading BD with ethylene shipments bound for the Mediterranean. On a monthly contract basis, US BD prices have sustained a better value option than rival European supplies for delivery into northeast Asia. In December, the US CP maintained a discount of about $200/t compared with Europe's monthly contract price. This was wider than the estimated mid-$100s/t discount on a spot basis. Despite the US' low-cost position and growing exposure to seaborne exports, Europe has shipped almost twice as much volume to Asia-Pacific from January-November this year. A key driver of this trend is China's taxes on US imports, which gives other regions preferential market access. There have been discussions of exporting tons on a term basis to northeast Asia, but the US would have to compete for business with western Europe, Brazil and intra-regional suppliers in Asia-Pacific. The US will continue to prioritize spot shipments elsewhere in Asia-Pacific, primarily South Korea and Taiwan, unless China reverses course and grants tariff waivers on US-origin imports. By Joshua Himelfarb Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Ineos plans to make further anti-dumping claims to EU
Ineos plans to make further anti-dumping claims to EU
London, 11 November (Argus) — UK-based petrochemical company Ineos plans to file five new anti-dumping duty (ADD) claims to the EU by the end of 2025, aiming to counter "low-cost, high-carbon imports". Ineos told Argus the five are in addition to three ongoing ADD investigations in which Ineos has since November 2024 been involved in filing complaints, and to two existing ADDs in which Ineos is contributing to seeking an extension or change ( see table ). The company gave no further details on countries or, in some cases, specific products in the ADD claims it is preparing. But it said it is also supporting customers with "a growing number of anti-dumping filings" on chemicals that affect Ineos' downstream value chains, such as polyethylene terephthalate (PET). Imports from the US, Middle East and Asia-Pacific are putting pressure on European chemicals manufacturing, which has high operating costs relative to other regions, Ineos said. It cited data from European Chemical Trade association Cefic showing imports of chemicals from China rose by 8.3pc in the first half of 2025. Ineos singled out the latest EU-US trade deal — a probable reference to the European Commission's proposal to reduce import duties on many chemical products to zero — saying it "gives away what little protection [Europe] had left" against imports from the US. It also said the commission was not acting quickly or decisively enough. It said the EU's provisional duties on on acrylonitrile butadiene styrene (ABS) imports from Taiwan and South Korea was "far too low", and these are failing to prevent imports into the EU. Most recent Global Trade Tracker (GTT) data for July and August show limited effect, with July imports up by 13pc on the year and August imports down by 4pc. Ineos Styrolution has three ABS plants in Europe: one in Antwerp, Belgium, and two in Germany at Cologne and Ludwigshafen. The three have combined capacity of 490,000 t/yr. For monoethylene glycol (MEG), Ineos' call relates to a sunset review of ADDs on imports from the US and Saudi Arabia that are due for expiry or renewal in November 2026. For PVC Ineos is seeking an extension or change to ADDs initiated on imports from Egypt and the US in 2024. The new claims that Ineos is preparing cover products including polyolefins, caustic soda, acrylonitrile-styrene-acrylate (ASA) acetic acid, butyl acetate and polyethylene glycols. Petrochemical industry bodies have called for more support, and the commission proposed a package of measures in July aiming to address high energy costs, global competition and weak demand. This included a pledge to apply trade defence measures more quickly and expand chemical import monitoring under an existing surveillance task force as part of a support package for the chemicals sector. Ineos has been an active voice asking for measures to support the industry, including an October call for cuts to taxes and levies on industrial energy in Europe to avert further plant closures. Citing a commissioned study by Oxford Economics, Ineos said carbon border measures and targeted tariffs can protect European producers from non-European producers that benefit from cheaper or less-regulated energy costs. By Will Collins, George Barsted, Alex Sands, Sebastian Du Plessis ADD claims that Ineos is involved with or preparing Product Current status Cases in preparation to be filed Polyolefins N/A Caustic soda N/A Acrylonitrile styrene acrylate (ASA) N/A Acetic acid/acetic anhydride/ethyl acetate N/A Polyethylene glycol/butyl acetate N/A Current investigation Acrylonitrile-butadiene-styrene (ABS) Complaint made in November 2024, provisional duties announced in July 2025 Polyterephthalic acid (PTA Investigation opened in August 2025 on imports from South Korea and Mexico 1,4 butanediol (BDO) Investigation opened in June 2025 on imports from Saudi Arabia, US, China Change/extension to existing ADD Polyvinyl chloride (PVC) Seeking extension/change to ADDs imposed on Egypt/US imports in 2024 Monoethytlene glycol (MEG) Seeking renewal of ADDs imposed on imports from Saudi Arabia and US in 2021 Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Ford boosts trucks on demand, Novelis fire
Ford boosts trucks on demand, Novelis fire
Houston, 23 October (Argus) — US automaker Ford is increasing its full-size pickup truck production in response to higher demand and to recover lost production after a major fire at a New York aluminum mill. The automaker said it will increase production of its F-150 and Super Duty trucks by 50,000 vehicles in 2026, with work being added at its Dearborn, Michigan and Kentucky truck plants. The US auto industry has faced supply challenges since a major fire in mid-September at aluminum-roller Novelis' Oswego, New York mill took down the entire plant for two weeks and the hot mill until the first quarter of 2026. The Oswego plant is a major supplier of aluminum sheet to the automotive industry. Ford will also keep production of its less-profitable F-150 Lightning pickup truck paused as it focuses on producing more profitable internal combustion engine and hybrid F-150s which it says also require less aluminum. Ford employees who previously made the electric F-150 will be transferred over to Dearborn to boost non-Lightning F-150 production by 45,000 vehicles. Ford will increase the workforce at Dearborn and supporting plants by nearly 1,400 workers. Ford aims to produce 5,000 more Super Duty pickups at its Kentucky truck plant in 2026, increasing that facility's workforce by an additional 100 or more workers. US steelmaker Steel Dynamics (SDI) said it has been able to produce and qualify some of its aluminum sheet products at its new aluminum mill for the automotive industry. SDI continues to ramp up its 650,000 short tons/yr aluminum mill located in Columbus, Mississippi. Global automaker Stellantis, which owns US brands such as Dodge, Jeep and Chrysler, said an unspecified parts shortage is taking down its Warren, Michigan sports utility vehicle plant for three weeks. By Rye Druzchetta Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Tyre recycler Pyrum to start work on new plant in Nov
Tyre recycler Pyrum to start work on new plant in Nov
London, 16 October (Argus) — German end-of-life tyre (ELT) recycler Pyrum Innovations said it plans to start construction on a new plant in Perl-Besch, Germany on 14 November. The facility will have a nameplate recycling capacity of 22,000 t/yr of ELTs and is scheduled to begin operations in 2027. Pyrum said site preparations are complete and long lead-time components have been ordered. Once operational, Perl-Besch will be the firm's largest plant and will more than double its current recycling capacity. Pyrum is also expanding its tyre pyrolysis oil (TPO) and recovered carbon black (rCB) plant in Dillingen, Germany by adding two new pyrolysis reactors. But after lower-than-expected output, the company said in an earlier statement it had postponed major investments in plant components from the second half of 2025 to the first half of 2026. The firm has also faced throughput bottlenecks at Dillingen's rCB unit. While the grinding process has reached its target of 1,650 kg/hr, the pelletisation stage has lagged. Pyrum said the issue is related to the transport of material between the two stages and said it is working on a solution. Once expanded, the Dillingen plant will have a nameplate capacity of 20,000 t/yr of TPO, up from 6,600 t/yr currently. By Sebastian du Plessis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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