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.
California packaging law challenged
California packaging law challenged
Houston, 19 March (Argus) — A coalition of packaging and business groups has sued to block California's "truth in labeling" law, arguing the recyclability label mandate set to take effect in October 2026 will burden companies and distort recycling markets. The groups argue that SB 343, enacted in 2021, could make it more difficult for consumers to correctly identify recyclable packaging and ultimately increase landfill volumes. Clear and consistent labeling is essential for maintaining circularity across grocery, food service and agricultural packaging supply chains, the plaintiffs said. SB 343 prohibits companies from using the chasing arrows recycling symbol or making recyclability claims unless their packaging meets state verified collection and processing criteria. The law is the first at the US state level to bar the chasing arrows symbol on products that do not qualify as recyclable under California's standards. CalRecycle has published a list of materials that meet the criteria, including PET, HDPE/LDPE and PP rigid containers, along with certain multi use products. To qualify, a material must be collected for recycling by at least 60pc of California residents, and recycling facilities must sort it into defined streams representing at least 60pc of statewide programs. Companies will have until early October 2026 to implement any required label or mold changes. The law also ties into SB 54, California's extended producer responsibility (EPR) program for single use packaging. While SB 343 governs recyclability labeling for all products and packaging, SB 54 sets broader 2032 requirements for recyclability and compostability. But SB 54 relies on the definitions established under SB 343, making the labeling law foundational to the EPR program's implementation. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan’s petchem firms to raise PE, PP sales prices
Japan’s petchem firms to raise PE, PP sales prices
Tokyo, 19 March (Argus) — Japan's polymer producers Japan Polyethylene, Japan Polypropylene and Prime Polymer will raise their polyethylene (PE) and polypropylene (PP) sales prices starting from April delivery, the firms have announced. Japan Polyethylene plans to raise all its PE sales prices by more than ¥90/kg ($0.56/kg), while Japan Polypropylene aims to increase all its PP sales prices by more than ¥80/kg, the companies said on 19 March. Fellow polymer producer Prime Polymer will also raise its PE and PP sales values by more than ¥90/kg starting from April, the firm announced on 17 March. The companies foresee domestic naphtha prices to rise above ¥100,000-110,000/kl along with surge in crude oil prices, due to the US-Israel war with Iran. The increases are larger than the price hikes of more than ¥45/kg in March 2022 for both Japan Polyethylene's PE and Japan Polypropylene's PP, in response to Russia's invasion of Ukraine. Prime Polymer's price increases are also larger than its previous PE and PP price hikes in March 2022 which were over ¥35/kg. Japan Polyethylene and Japan Polypropylene also expect shortages of feedstock ethylene and propylene to impact polymer production. But they declined to disclose further details of their manufacturing situations, including current plant operating rates and output volumes. Prime Polymer also cited the uncertainty of naphtha and consequently its procurement of feedstock ethylene and propylene. But the company did not respond to Argus ' inquiry for further details. Japan Polyethylene has low-density PE output capacity of 562,000 t/yr and high-density PE production capacity of 423,000 t/yr, according to the Japanese ministry of economy, trade and industry (Meti)'s latest survey as of the end of 2024. The firm is held 58pc by Mitsubishi Chemical's wholly-owned subsidiary Japan Polychem and 42pc by petrochemical firm Japan Polyolefine, a joint venture of refiner Eneos and petrochemical firm Resonac. Japan Polypropylene owns PP production capacity of 765,000 t/yr, Meti's survey shows. The company is held 65pc by Japan Polychem and 35pc by JNC Petrochemical, a wholly-owned subsidiary of chemical producer Chisso. Prime Polymer owns manufacturing capacities of 600,000 t/yr PE and 1.26mn t/yr PP. The company is held 65pc by domestic petrochemical producer Mitsui Chemicals and 35pc by refiner Idemitsu. Other Japanese petrochemical companies have faced similar issues. Kaneka will also raise sales prices of its polyvinyl chloride (PVC) by more than ¥35/kg because of rising feedstock costs, while Shin-Etsu has reduced domestic PVC output and will increase domestic sales prices for PVC by more than ¥30/kg. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Iran war to push up PE, PP prices: LyondellBasell
Iran war to push up PE, PP prices: LyondellBasell
Houston, 17 March (Argus) — US chemicals company LyondellBasell expects to be able to push North American polyethylene (PE) and polypropylene (PP) prices higher due to global polymer supply and feedstock disruptions caused by the Iran war, chief financial officer Agustin Izquierdo said today during the JP Morgan Industrials Conference in Washington, DC. The company has announced a 10¢/lb increase for March PE contracts and another 10¢/lb increase for April PE contracts. So far, the proposed price increases have not had a negative impact on order books, Izquierdo said. "10¢/lb is not scaring anybody," he said. "Still, we see a healthy number of orders in the books." Prior to the start of the war, North American PE inventories were already at lower levels of around 37 days of inventory, Izquierdo said, adding that the market is usually balanced at around 45 days of inventory. The lower inventory levels, combined with rising demand and higher prices for PE exports out of the US, should provide enough support for higher margins, he said. "We have demand everywhere," Izquierdo said, adding that there is healthy demand for US product out of Europe, Latin America and Africa due to supply disruptions in the Middle East. LyondellBasell is also seeking a margin increase of 10¢/lb for US/Canada April PP contracts, which Izquierdo said will be supported by increases in global propane costs and lower operating rates in Asia. "We have an opportunity to start exporting out of North America," he said. "That is very leveraging for us." For every $100/metric tonne (t) increase in integrated PE margins, the company said it sees a potential earnings increase before interest, taxes, depreciation and amortization (Ebitda) of approximately $320mn for North America and $280mn for Europe. For every $100/t PP margin increase over propylene, the company said it sees a potential ebitda increase of approximately $440mn for both regions. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan’s Shin-Etsu reduces domestic PVC production
Japan’s Shin-Etsu reduces domestic PVC production
Tokyo, 17 March (Argus) — Japanese chemical company Shin-Etsu Chemical has reduced domestic polyvinyl chloride (PVC) production and decided to raise domestic sales prices, because of limited supplies of feedstock ethylene. Shin-Etsu will raise domestic sales prices for PVC by more than ¥30/kg ($0.18/kg) starting with deliveries on 1 April, the company said on 16 March. This equates to an increase of approximately 20pc in sales prices, it added. Shin-Etsu has a production capacity of 550,000 t/yr for PVC at its Kashima plant in Ibaraki prefecture, where it receives supplies of feedstock ethylene from petrochemical producer Mitsubishi Chemical's Ibaraki plant. Mitsubishi Chemical has already cut operating rates at its 485,000 t/yr naphtha-fed cracker at the Ibaraki plant because of concerns over naphtha supplies due to the US-Israel war with Iran. Ethylene prices have spiked, and Mitsubishi Chemical has started limiting supply volumes of ethylene, which has forced Shin-Etsu to reduce its PVC production, review sales prices and limit supply volumes, Shin-Etsu said. The company's other products have not been affected by the limited ethylene deliveries, it added. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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