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.
Japan’s cracker rates fall to a historic low again
Japan’s cracker rates fall to a historic low again
Tokyo, 22 May (Argus) — Average operating rates of Japan's naphtha-fed ethylene crackers fell to 67.3pc in April, reaching a record low for the second consecutive month, according to the Japan Petrochemical Industry Association (JPCA). Persistent naphtha supply disruption due to the US-Iran war in the Middle East, along with multiple planned turnarounds of the crackers, have pressured operating rates. The April operating rates dropped by 11.3 percentage points from the same month in 2025, and by 1.5 percentage points from March, when rates hit a record low of 68.8pc. Four crackers were shut for regular maintenance in April, compared to none a year earlier. Ethylene output in April declined by 37pc on the year to 283,500t but rose by 4pc from March. Production of major polymers — low-density polyethylene (LDPE) and polypropylene (PP) — also fell by 27pc to 79,100t and by 24pc to 146,400t, respectively, from a year earlier. Polyvinyl chloride (PVC) output dropped by 24pc on the year to 93,200t. But production of LDPE, PP, and PVC in April recovered from March levels, as domestic petrochemical producers have attempted to diversify feedstock naphtha import sources beyond the Middle East, according to JPCA. LDPE and PP output rose by 47pc and 17pc in April on the month, while PVC production increased by 4.3pc on the month. JPCA expects naphtha purchases from countries outside the Middle East to rapidly increase in May. Meanwhile, Japan has secured polyethylene and PP inventories that could cover domestic demand for more than three months, and naphtha production at domestic refineries has helped ease the impact of supply disruptions, JPCA added. Japan relies heavily on the Middle East for its naphtha supply. The country imported 583,609t of naphtha from the UAE, Kuwait, Qatar, and Bahrain in March, accounting for 73pc of total imports of 798,523t imports in March, according to the latest data from finance ministry. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US housing starts drop in April
US housing starts drop in April
Houston, 21 May (Argus) — US housing starts fell in April, dropping from a high in March, but remained above year-prior levels on increased multi-family unit construction, US Census Bureau data show. US housing starts fell to a seasonally-adjusted annual rate of 1.465mn units in April, down by 2.8pc from March. Starts in March were the highest level since December 2024 . Starts in April, though, rose by 4.6pc from the prior year. Construction activity remains driven by multi-family units. Starts for projects of five or more units increased by 23pc in April to an annual rate of 529,000 units compared to the same month last year. Single-family starts fell by 2.4pc annually in the same period, dropping to an annualized rate of 930,000 units. Permit issuances for new houses fell by 0.2pc from the same time a year prior to a seasonally-adjusted annual rate of 1.442mn units. Permits for multi-family units grew by about 12pc year over year to 141,000 units. Polyvinyl chloride (PVC) market participants in the housing sector have reported mostly unchanged domestic demand in the second quarter for PVC building products, with producers and builders focused on navigating an uncertain cost environment as the conflict with Iran drags on. The diverging momentum for single-family and multifamily construction reflects the rising inflation and higher mortgage rates that are making it more challenging for consumers to buy new homes. The US Consumer Price Index (CPI) rose by 3.8pc in April year over year and was above 3.3pc in March, well in excess of the US Federal Reserve's 2pc inflation target. Average US mortgage rates climbed to 6.56pc in the week ended 15 May, extending an upward trend that began in late February. The Federal Reserve is unlikely to change its target interest rate at its June meeting, with rates futures traders forecasting one interest rate hike by the end of this year, data from CME FedWatch show. Home builders had hoped for a series of rate cuts in 2026 that would have potentially induced demand for new housing. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India’s Gail restarts Pata petchem complex
India’s Gail restarts Pata petchem complex
Mumbai, 19 May (Argus) — India's state-owned energy firm Gail has resumed petrochemicals production at its Pata facility in the northern state of Uttar Pradesh on 19 May, following a shutdown that lasted over two months, a source familiar with the matter told Argus . The plant has been shut since 9 March after a government order directed gas distributors to start full or partial curtailment of gas supplies to petrochemical plants, including ONGC Petro Additions (Opal), Gail Pata and Reliance's oil-to-chemicals units. The Pata complex will likely run at a reduced operating rate this week, another source told Argus , although the exact run rate could not be confirmed. It was not immediately clear if the New Delhi issued a fresh order that allowed for a phased restart of the petrochemicals project. India's Ministry of Petroleum and Natural Gas and Gail did not immediately respond to Argus requests for comment. The status of the other plants could also not be determined at the time of writing. Gail's Pata facility has two steam crackers with a combined ethylene production capacity of 900,000 t/yr. It also has a linear low-density polyethylene/high-density polyethylene (LLDPE/HDPE) swing unit with a capacity of 610,000 t/yr and a separate HDPE capacity of 200,000 t/yr. The plant sources feedstock through a pipeline from Indian state-owned upstream firm ONGC's Hazira plant on the west coast of Gujarat. The restart of the plant would bolster domestic supply, partially offsetting reduced availability from Middle Eastern producers, which account for 62pc of India's PE imports, data from Global Trade Tracker show. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US PE export prices decline on weak demand
US PE export prices decline on weak demand
Houston, 15 May (Argus) — US polyethylene (PE) export prices declined again this week, as weak global demand combined with lower prices out of Asia continued to add downward pressure. US prices were assessed down by between 1.5¢/lb to 5¢/lb from last week's levels for the week ended 15 May, depending upon the grade. The range is beginning to narrow as the upper end has dropped due to a lack of buying interest, sources said. Prices have been easing over the last three weeks due to competion from Chinese resin, which was in some cases as much as $400/t cheaper than US PE. Now, as Chinese prices are rising, and as freight costs out of China increase, the spread between the two regions has narrowed, traders said. "The China window is starting to close because China prices have gone up… and freight is going up also from China," said one US PE trader. But buyers are not willing to entertain higher prices, as they are finding they are having trouble passing those increases on to downstream customers, the trader said. "Demand is very, very weak," the trader said. Global buyers for now are waiting on the sidelines, hoping for further price declines. Traders said they are only doing back-to-back deals at the moment. "Our position is not to buy anything for inventory right now," said another US trader. Preliminary April data from the American Chemistry Council (ACC) released this week showed total US/Canada PE exports declined by 8.5pc from March levels. Exports represented 43.8pc of total sales in April, down from 45.3pc of total sales in March, according to the ACC's Plastics Industry Producers Statistics Group as compiled by Vault Consulting. Market participants said they expect lower export volumes to continue in May, unless prices decline further. One trader said global buyers likely have enough inventory to hold them through at least mid-June or even into July. The trader said prices would need to fall down to the 40s¢/lb level before demand would significantly improve. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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