

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.
ACBL sets release dates for Illinois River lock
ACBL sets release dates for Illinois River lock
Houston, 13 February (Argus) — Major barge carrier American Commercial Barge Line (ACBL) has issued its earliest release dates for Illinois River barges planning to transit the Lockport Lock, which closed for maintenance last month. Release dates will be from 23 February through 19 March for barges expecting to pass through the Lockport Lock over the spring season, ACBL said Wednesday. The US Army Corps of Engineers (Corps) expects to reopen the Lockport Lock on 25 March, the Corps said when it announced the closure . The Corps closed the lock on 28 January to install new vertical lift gates and make repairs. The closure has cut off major trade hubs such as Chicago, Illinois, and Burns Harbor, Indiana, from Illinois River barge transportation. Lock 27 and the Mel Price Lock above St Louis will remain partially closed through 1 April, as they are also undergoing maintenance by the Corps, ACBL said. The barge line acknowledged higher demurrage rates were likely for those who loaded barges prior to the released dates. Initial transit on the Illinois River is also anticipated to have a significant backlog in the spring months. By Meghan Yoyotte ACBL's Illinois River release dates Origin Port Barges destined above Lockport Lock, on IL River Mobile, AL 25 Feb Houston, TX 23 Feb Weeks Island, LA 26 Feb New Orleans, LA 3 Mar Pittsburgh, PA 2 Mar Cincinnati, OH 5 Mar Decatur, AL 10 Mar Memphis, TN 10 Mar Evanscille, IN 12 Mar Cairo, IL 16 Mar St Louis, MO 19 Mar — ACBL Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Mexico to boost Pemex petrochemicals output
Mexico to boost Pemex petrochemicals output
Sao Paulo, 13 February (Argus) — Mexico will invest heavily in state-run oil company Pemex to increase production of polyethylene (PE), ethylene oxide (EO), other petrochemicals and fertilizers, President Claudia Sheinbaum said The investments are part of Pemex's 2025-2030 work plan and aim to increase the company's PE production to 690,000 metric tonnes (t)/yr, Sheinbaum said Wednesday in a press briefing. Pemex currently has no significant PE production capacity in Mexico. Production of basic petrochemicals, including PE, has declined because of insufficient investment. Braskem Idesa, a fellow producer, has output capacity of 1mn t/yr of PE. Pemex will also increase EO production to 250,000 t/yr. Pemex produced approximately 120,000-150,000t of ethylene oxide in 2023. The government plans to allocate Ps20bn ($1.05bn) to the Cangrejera complex and increase production capacities at the Morelos and Cangrejera complexes for ethane derivatives, including PE and EO. This will help Pemex reach its production goal. Pemex will also upgrade the Escoluan petrochemical complex to produce 750,000 t/yr of urea. The plan includes producing 30,000 b/d of gasoline components and 330,000 t/yr of aromatic products. Furthermore, the government plans to invest Ps8bn to rehabilitate the Lazaro Cardenas plant and build a new complex in Veracruz, Sheinbaum said, thus increasing increase production of phosphate fertilizers by 1.5mn t/yr and of urea by 1.6mn t/yr. Pemex will primarily finance these projects, Sheinbaum said. The energy, finance and public credit ministries will coordinate to ensure timely payments to suppliers. Mexico's 2025 federal expenditure budget will include a federal government contribution of Ps136bn for debt amortization. A new oil tax will replace previous taxes, Sheinbaum said. Rates for the new tax will be set at 30pc for hydrocarbons and 11pc for non-associated natural gas, which will offer fiscal stability. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Trump bans federal use of paper drinking straws
Trump bans federal use of paper drinking straws
Houston, 11 February (Argus) — President Donald Trump has signed an executive order to ban the procurement of paper drinking straws by the US government and to take steps toward enacting a similar ban nationwide. An "irrational" campaign against plastic straws had forced Americans to use "nonfunctional" paper straws that are more expensive and may pose a risk to human health, Trump said in the order signed Monday. Health risks include the leaching of polyfluoroalkyl substances (PFAS) from paper straws into drinks, the White House said. The order signed on Monday bans the purchase of paper straws for use in federal buildings and requires within 45 days the development of a " National Strategy to End the Use of Paper Straws". Former president Joe Biden had directed the federal government to end the use of single-use plastic in food applications by 2027. The Plastics Industry Association praised the executive order. "Plastic is the best material for nearly everything it is used for, while being sustainable," Plastics Industry Association chief executive Matt Seaholm said. "Straws are just the beginning — 'Back to Plastic' is a movement we should all get behind." Plastic straws are typically made from polypropylene. Environmental group Greenpeace USA accused Trump of signing the order as a distraction from his administration's moves to prevent federal institutions from protecting Americans from microplastics and "dangerous chemicals". By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
ExxonMobil starts up LLDPE unit in China's Huizhou city
ExxonMobil starts up LLDPE unit in China's Huizhou city
Shanghai, 6 February (Argus) — ExxonMobil has started up its 730,000 t/yr linear low-density polyethylene (LLDPE) No.1 unit in China's Huizhou city today. The unit has also achieved on-specification production using purchased ethylene feedstock. Commercial operations are expected to start between the end of February and March, when its upstream 1.6mn t/yr cracker starts running, according to market sources close to the company. ExxonMobil aims to transition from LLDPE production to metallocene linear low-density polyethylene (mLLDPE) production after several months. ExxonMobil's first phase in Huizhou also includes a 500,000 t/yr No. 2 LLDPE unit, which is expected to undergo test runs in mid-February. The No.2 unit is expected to start commercial mLLDPE production after its cracker starts operations. The firm's 500,000 t/yr LDPE unit is also expected to start up in the second quarter. A total of around 5mn t/yr of new PE capacities are expected to commission in China this year, and ExxonMobil's project in Huizhou accounts for 35pc of the total. This compared with 2024, when China started up 3.2mn t/yr of new PE capacities. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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