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.
EU sets definitive duties on Taiwanese and Korean ABS
EU sets definitive duties on Taiwanese and Korean ABS
London, 13 February (Argus) — The European Commission has imposed definitive duties on imports of acrylonitrile-butadiene-styrene (ABS) from Taiwan and South Korea into the EU. The duties are set on a cif basis at the EU border and typically apply for five years. South Korea's LG Chem and Lotte Chemical received duties of 7.5pc and 5.2pc, respectively, while other unnamed Korean producers were assigned a 7.5pc rate. The duty for LG Chem is 3.8 percentage points higher than the provisional level, while Lotte Chemical's declined by 0.6 percentage points. Duties for other unnamed Korean companies rose by 1.7 percentage points. Taiwanese firms Chimei and Grand Pacific Petrochemical were each assigned a 10.9pc duty, up by 0.1 percentage points from the provisional level. Formosa Chemical and Fibre received the highest rate at 21.7pc, unchanged from the provisional duty. Duties on other unnamed Taiwanese producers also remained unchanged at 21.7pc. The definitive measures follow provisional duties introduced in August 2025. Several producers told Argus the provisional duties did not provide enough of a deterrent to curb imports. During the investigation period, when imports had to be registered with EU customs, the commission found that volumes rose by 6pc on a monthly average basis before provisional duties were imposed. Import prices increased by 2-3pc in the same period. On this basis, it concluded that higher inflows at slightly firmer prices were not sufficient grounds to apply definitive duties retroactively. The definitive rates will apply from 12 February 2026. South Korea and Taiwan are Europe's two largest ABS suppliers. Europe imported about 195,000t of ABS from the two countries during January-November 2025, according to Global Trade Tracker (GTT). Imports in 2025 were broadly in line with previous years, averaging around 200,000 t/yr since 2021. The introduction of provisional duties in the third quarter did not appear to affect volumes, with third-quarter imports up by about 2pc on the year. Mid-fourth-quarter 2025 figures were roughly half of full fourth-quarter imports in 2024. By Sebastian du Plessis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Fukoku set to launch US rubber parts plant
Fukoku set to launch US rubber parts plant
Houston, 30 January (Argus) — Manufacturer Fukoku plans to open a US plant for industrial rubber components, with operations scheduled to begin in January 2027. The Japan-based company has partnered with its consolidated Korean subsidiary, Fukoku Korea, to develop the facility through a newly established US entity, FKC America. The 50:50 joint venture aims to expand into new markets by combining products already used by Hyundai Motor with a new product lineup. The plant, located on a 59,489m² (14.7-acre) site in Virginia, will produce rubber products for damper pulleys, thermally conductive gap fillers and other battery-related products. The companies have pledged $7.4mn in capital for the project. Fukoku has maintained a US presence since 2001 through Fukoku America, based in Laurens, South Carolina, where it manufactures, warehouses and ships motor vehicle components. By Joshua Himelfarb Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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.
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