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.
Higher PVC, soda prices boost Unipar Q2 results
Higher PVC, soda prices boost Unipar Q2 results
Sao Paulo, 7 August (Argus) — Brazilian chlor-alkali and PVC producer Unipar Carbocloro posted stronger second-quarter 2026 results supported by the ramp-up of its Cubatão plant, higher international soda and PVC prices, and increased sales volumes, it said during its earnings call. Sales volumes increased quarter on quarter, with soda up 9pc, PVC up 6pc and chlorinated products up 4pc. Unipar highlighted chlorinated products as a strategic segment because it is less exposed to petrochemical cycles than PVC. The improvement in Brazil was driven by Cubatão reaching full operating capacity in April, while operations in Argentina remained stable, chief financial officer Alexandre Jerussalmy said. Higher international soda and PVC prices driven by the ongoing conflict between US and Iran supported revenue and helped to offset higher ethylene and natural gas costs, although an appreciation of the Brazilian real against the US dollar had a negative effect on results. The company also reported progress in its chlorine liquefaction project in Camaçari, Bahia state, aimed at increasing purification and expanding higher-value product sales. In Santo André, Unipar is advancing an expansion project that will add 28,000 t/yr of PVC capacity through the installation of an additional electrolyzer. By Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indian polyolefin importers wary on Middle East risks
Indian polyolefin importers wary on Middle East risks
Mumbai, 3 August (Argus) — Polyolefin buyers in India have slowed import purchases because the latest flare-up in the US-Iran war pushed prices higher and created uncertainty over delivery schedules. Prices of several polyethylene (PE) and polypropylene (PP) grades have risen in recent weeks on the back of higher Brent crude values, prompting caution among traders even towards booking China-origin material. Argus assessed linear low-density polyethylene (LLDPE) prices at $1,180-1,220/t cfr India for the week ended 31 July, compared with $1,090-1,150/t cfr India for the week ended 26 June. PP raffia prices were assessed at $1,190-1,240/t cfr India last week, compared with $1,100-1,140/t cfr India for the week ended 26 June. Many bought in a panic in April and will not repeat the same mistake now, said a Mumbai-based trader, referring to a surge of imports in the initial days of the war. India's PP imports rose rose by 39pc on the month to a record 201,732t in May on the back of a surge of China-origin arrivals because of tight domestic supply, Global Trade Tracker (GTT) data show. A subsequent price decline in June on the back of the interim peace deal also made importers cautious about committing to shipments given that prices could fall if freight shipping conditions change. Buyers would only pay a premium if the sellers can guarantee prompt shipments, the trader added. Higher freight charges are also stopping Middle East-based producers from cutting offers. Shipping companies signalled surcharges of up to $140/t for movement through the Bab el-Mandeb strait after attacks on Saudi energy vessels. The waterway is especially important for Saudi producers exporting polyolefins to key Asian demand hubs. But Saudi producer Sabic has not observed any disruption to container vessel traffic so far through the strait, it said last week. Buying could pick up in the coming days if domestic inventories are drawn down quickly, a Middle East producer said. Buying shifts to domestic producers Many traders are turning to domestic producers in the short term. The government's reintroduction of petrochemical import duties and the recent jump in import offers had encouraged some buyers to shift to Indian polyolefin suppliers, a key market participant said. Curbs on feedstock usage were mostly removed by New Delhi, prompting most Indian petrochemical producers to raise operating rates to offset the fall in imports. Major Indian producers have lifted LLDPE prices by 11,000 rupees/t ($115/t) and PP raffia prices by Rs12,500/t since 23 July because of higher crude prices and a slowdown in import bookings. If import bookings stay low, supply could tighten from end-August when converters seek material ahead of India's festive season, which typically begins in September. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India imposes new s-PVC import duty
India imposes new s-PVC import duty
Singapore, 27 July (Argus) — India will impose duties on suspension polyvinyl chloride (s-PVC) imports with cost, insurance, and freight (cif) value of less than or equal to $0.766/kg, the ministry of commerce and industry said in a notification on 24 July. India's Directorate General of Foreign Trade (DGFT) said imports with a value at or less than $0.766/kg ($766/t) will be classified as "restricted" for a period of six months from 24 July onwards. The notification also underlines that this restriction "will not be applicable for imports by 100pc Export Oriented Units (EOUs), units in the SEZ and imports under the Advance Authorisation Scheme, subject to the condition that the imported inputs are not sold into the Domestic Tariff Area (DTA)". Market participants surveyed underlined that the notification has not had a noticeable impact on prices for Indian s-PVC imports, with other factors such as high freight rates and recent offer announcements driving the market. The new policy is expected to provide a price floor for the next six months in the Indian markets, but demand may be weak due to the monsoon season which will run until September, a producer in India said. Sellers outside of India are currently reassessing their strategies, as it is still unclear whether the policy will still be in effect after the six-month period. "We are in the middle of waiting to see what happens, although the impact may not be too severe due to recent [tensions in the Middle East]," an exporter based in China said. India imported a total of 3.153mn t of PVC in 2025, according to data from Global Trade Tracker (GTT), while imports in January-May this year reached just above 1.415mn t. Of these imports, China remains the greatest contributor and made up over 47pc of total imports in 2025 and over 53pc of total imports so far in 2026. While India remains heavily reliant on imported PVC supplies, the import duty is viewed as a way to control long-term import supply into India ahead of upcoming production capacities in the country from 2027 onwards. By Julia Tan and Michael Vitiello Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
EU publishes vehicle recycled content rules
EU publishes vehicle recycled content rules
Brussels, 24 July (Argus) — The EU today published the regulation setting recycling requirements for vehicles and end-of-life vehicle management, which includes the obligation for at least 15pc of recycled plastic in new vehicles from 1 September 2032. This increases from 1 September 2036 to 25pc of plastic recycled by weight from post-consumer waste. The regulation excludes from the weight calculation elastomers from tyres and thermosets, apart from cushioning polyurethane foams. A further provision requires at least 20pc of the target to come from plastics recycled from end-of-life vehicles (ELVs) or from parts removed from used vehicles. The European Parliament approved the rules in June. German centre-right EPP lawmaker Jens Gieseke, who helped draft the measure, said it opens the way for more recycled steel, aluminium and other critical raw materials to be used in new vehicles. By 30 September 2028, the European Commission is obliged to adopt a delegated act establishing a minimum share of steel recycled, and where relevant ferrous scrap, from post-consumer steel waste. The steel target should apply no later than 14 August 2033. Similarly, the commission has to set a minimum target share of recycled aluminium and alloys, also applicable by that date. More broadly, the regulation sets a 1 September 2032 target for EU type-approved vehicles to be constructed so they are "reusable or recyclable" to a minimum of 85pc by mass. The commission has to assess by 31 December 2033 the feasibility of targets to increase the use of biobased feedstock in vehicles' plastics. The law enters into force in 20 days, with provisions generally applying from 1 September 2028. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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