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.
Construction spending slips in July, PVC softens
Construction spending slips in July, PVC softens
Houston, 3 September (Argus) — Total US construction spending declined in July, driven by a decrease in private investment, according to the latest data from the US Census Bureau. Polyvinyl chloride (PVC) demand softened through July and into August after growing through the first half of the year. Market participants have said the housing market in particular has not supported strong growth in PVC demand through the summer, even as public spending on infrastructure has blunted some of the weakness in the wider market. US contract prices rose by 1¢/lb in July to 61.5¢/lb, despite producers initially having sought a 2¢/lb increase. This was largely due to production disruptions from Hurricane Beryl in mid-July combined with rising feedstock costs for ethylene. PVC demand has eroded slightly more in August while production has recovered. Total spending fell to the lowest seasonally adjusted annual rate since March. Total private construction spending decreased in July while public spending increased. The 0.4pc loss in private residential spending undid the gains made in June. Total manufacturing spending ticked up month to month, while private commercial extended its decline. Highway and street construction extended declines, but remained up year over year. Public water and sewage spending ticked upwards on a monthly and yearly basis. By Aaron May and Cole Sullivan US construction spending $mn 24-Jul 24-Jun +/-% 23-Jul +/-% Total Spending 2,162,683.0 2,168,990.0 -0.3 2,027,412.0 6.7 Total Private 1,678,713.0 1,685,471.0 -0.4 1,579,640.0 6.3 Private Residential 941,559.0 945,269.0 -0.4 874,187.0 7.7 Private Manufacturing 236,074.0 236,106.0 0.0 196,357.0 20.2 Private Commercial 119,359.0 119,784.0 -0.4 140,100.0 -14.8 Total Public 483,971.0 483,519.0 0.1 447,772.0 8.1 Public Water/Sewage 75,109.0 74,350.0 1.0 66,105.0 13.6 Public Highway/Road 140,929.0 142,030.0 -0.8 135,957.0 3.7 US Census Bureau Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
California passes total retail polyethylene bag ban
California passes total retail polyethylene bag ban
Houston, 30 August (Argus) — California lawmakers have passed a complete ban on polyethylene (PE) retail plastic bags, closing a legal loophole that previously allowed thick reusable PE bags made of 40pc recycled plastic. Both the California Senate and Assembly approved the measure, which goes to governor Gavin Newsom (D) for a signature. If he does sign it, the bill would go into effect on 1 January 2026. Flexible plastics reclaimers and a newly formed advocacy group called the Responsible Recycling Alliance (RRA) opposed the bill, citing a higher carbon footprint for paper and reusable bags. A 2014 California law allowed for reusable PE bags in retail stores if they had at least 40pc post-consumer recycled resin. This helped create significant demand for post-consumer recycled flexible PE resin. But the 40pc rule received scrutiny after reports showed that the thicker bags were unrecyclable, despite their labeling. CalRecycle reported that the volume of merchandise bags discarded grew to 231,000 metric tonnes by 2022, a 47pc increase from 2014, when the original plastic bag ban was passed. "It's time for us to get rid of these plastic bags and continue to move forward with a more pollution-free environment," senator Catherine Blakespear (D) said following passage of the bill in the state Assembly. The RRA, the group founded by reclaimers Merlin Plastics, PreZero and EFS Plastics, had argued unsuccessfully that the bags should instead be included in California's extended producer responsibility program. Woven polypropylene (PP) bags were not affected by California's latest bag ban. But a study by market research company The Freedonia Group funded by the American Recyclable Bag Alliance showed that banning PE bags and enforcing reusable PP bags caused virgin plastics usage for bags to rise by 300pc after the ban's passage in 2022. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India extends BIS deadline for PVC imports to December
India extends BIS deadline for PVC imports to December
Singapore, 26 August (Argus) — India has extended the implementation of Bureau of Indian Standards (BIS) quality controls on polyvinyl chloride (PVC) homopolymer imports into India from 26 August to 24 December 2024. The notice was published in the Gazette of India on 23 August. The initial proposal from India's Department of Chemicals and Petrochemicals (DCP) was submitted on 11 August 2023 , with an implementation date of 26 August communicated to the wider market in February 2024. As of this month, only 12 PVC production units outside of India are currently listed as being BIS-certified, meaning they would be able to supply PVC into India after the BIS deadline, but many other key exporters to India are still waiting for their certification to come through. Some are expected to receive their certification in September, but the majority of production units that typically export to India have yet to be audited by BIS agents as of the time of writing. Indian PVC producers are also required to receive BIS certification before the deadline, with most having already received approval from BIS agents. But the Indian PVC market remains net-short and in need of imports, brewing expectations among most market participants in recent months that an extension to the BIS was likely since most major suppliers had yet to receive approval or audits. Further upstream, market participants are currently waiting for BIS quality controls to be applied on imports of ethylene dichloride (EDC) and vinyl chlorine monomer (VCM) — two major feedstocks used to produce PVC in India — on 12 September. Changes in import shares The Indian PVC market recorded historically high import demand in 2023, with imports totalling over 3.2mn t/yr, according to GTT data. Latest trade data for 2024, which only indicates imports between January and June, shows that India has imported over 1.5mn t/yr of PVC as of June, just under the halfway mark for 2023. Most origins recorded growth in India's PVC import share in 2023, with the most notable being China, North America and the remainder of northeast Asia. The share of imports from northeast Asia — excluding China — into India grew by 47pc in 2023, while China almost doubled its import share, and North America almost tripled this during the same time period. PVC import growth from China in 2023 and 2022 was mainly denoted by higher carbide-based PVC imports into India, which tends to be cheaper than conventionally and globally produced ethylene-based PVC. BIS quality controls on PVC imports will effectively remove supply of PVC containing a residual VCM content above two parts per million, which is common in carbide-based PVC specifications. An extension of BIS quality controls on PVC could potentially bode well for total import growth into India in 2024, with the potential for similar results as 2023, as the country estimates PVC consumption in the construction and agricultural sectors to remain strong in the coming years. But the possibility of further PVC import restrictions remains likely in the medium-term, as new Indian PVC production capacities are set to come on line between 2026-30. In a separate investigation, Indian authorities are looking to implement potential anti-dumping duties on suspension PVC (s-PVC) imports into India , but the result of this investigation has yet to be finalised. This could potentially restrict import growth from North America, northeast Asia and other major export origins, creating more competitiveness for imports into India as the country looks to become self-sustained on PVC supply. By Michael Vitiello India's PVC imports '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India extends anti-dumping duties on c-PVC imports
India extends anti-dumping duties on c-PVC imports
Singapore, 26 August (Argus) — India's Ministry of Finance has recommended continuing anti-dumping duties (ADDs) on chlorinated polyvinyl chloride (c-PVC) imports from China and South Korea, citing continuing imports below market value threatening the domestic sector. The recommendation was published in the Gazette of India on 23 August, with ADDs to be applied to all c-PVC imports from China and South Korea either in compounded form or unprocessed form. ADDs under this notification can be levied for a period of five years, unless revoked, superseded or amended earlier from the date of publication in the Gazette of India. An initial anti-dumping investigation began in March 2019, followed by final findings and initial ADDs on c-PVC imports from China and South Korea on February 2020. Indian producers noted continuing dumping of c-PVC resin following expected demand growth from the agricultural and construction sectors. But authorities said, despite new production capacity planning to come on line in India in the coming years, that the likelihood of further dumping would remain high should ADDs be removed too soon. India has already implemented ADDs on paste PVC imports on 13 June, while continuing to investigate anti-dumping of suspension PVC imports . C-PVC is produced by the addition of chlorine to standard PVC resin, with the final compound having greater resistance to higher temperatures, fire and corrosion compared with traditional PVC. C-PVC is primarily used in pipe applications. By Michael Vitiello India c-PVC ADDs Country of origin Country of export Producer Specification Duty ($/t) China Any Any CPVC resin 790 China Any Any CPVC compound 605 Any China Any CPVC resin 790 Any China Any CPVC compound 605 South Korea Any Hanwha Solutions Corporation CPVC resin 593 South Korea Any Hanwha Solutions Corporation CPVC compound 792 South Korea Any Any CPVC resin 593 South Korea Any Any CPVC compound 792 Any South Korea Any CPVC resin 593 Any South Korea Any CPVC compound 792 Source: Ministry of Finance Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Spotlight content
Browse the latest thought leadership produced by our global team of experts.
Explore our light olefins products
