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.
PureCycle raises $300mn for more PP recycling
PureCycle raises $300mn for more PP recycling
Houston, 17 June (Argus) — US polypropylene (PP) recycler PureCycle Technologies said it has raised $300mn to build 1bn lbs/yr of new recycling capacity before 2030 in the US, Europe and Asia. PureCycle turns PP plastic waste into a product that can be recycled and reused multiple times. PureCycle currently operates an Ironton, Ohio, facility with a nameplate capacity of 107mn lbs/yr. It previously announced plans for another facility in Augusta, Georgia, but with the new funding will accelerate expansion plans in Rayong, Thailand, and at the Port of Antwerp's NextGen district first. The Thailand and Antwerp plants will each have a capacity of 130mn lbs/yr, while the Augusta expansion, which will utilize second generation technology, will have a capacity of 300mn lbs/yr. PureCycle is partnering with Integrated Petrochemical Pioneer (IRPC) to construct the PP recycling facility in Rayong. Construction will begin in late 2025 and will become operational mid-2027. Work on the Antwerp and Augusta facilities will begin in 2026 and the plants will be operational in 2028 and 2029, respectively. PureCycle said it opted to proceed with the Thailand and Antwerp project before the Augusta expansion because both sites have existing infrastructure and access to feedstocks, which will bring down construction and operation costs and bring the facilities online faster. By Jeb DiSorbo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
LyondellBasell agrees sale of select European assets
LyondellBasell agrees sale of select European assets
London, 17 June (Argus) — Petrochemicals firm LyondellBasell is in exclusive negotiations with Munich-based industrial investment firm Aequita regarding the sale of four olefin and polyolefin assets in Europe. The deal includes its integrated cracker and polyolefin assets in Berre, France, and Muenchsmuenster, Germany, as well as stand-alone polypropylene sites in Carrington, UK, and Tarragona, Spain. The deal is contingent on local council approval and is expected to close in the first half of 2026, LyondellBasell says. The sites were part of six put under strategic review in May 2024. The assets "represent a scaled olefins and polyolefins platform strategically located in proximity to a long-standing customer base", the firms say. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Dow starts up new LLDPE/HDPE unit in Freeport
Dow starts up new LLDPE/HDPE unit in Freeport
Houston, 16 June (Argus) — Dow is starting up its new 600,000 t/yr high density polyethylene/linear low density polyethylene (HDPE/LLDPE) swing unit in Freeport, Texas, the company confirmed today. The new line is in "start-up" mode, according to one source, who said the unit has produced some pounds and is in the process of qualifying that the resin produced meets certain specifications. A company spokesperson today confirmed only that the unit is "coming online" but provided no further details. The unit is expected to produce several LLDPE grades, including some LLDPE octene resin, but it also will have the capability to produce HDPE grades. The new unit is the first new capacity to start up in the North America PE market since the start-up of Nova Chemical's new 425,000 t/yr LLDPE plant in Ontario, Canada, in the first quarter of 2024. That unit also produces some octene grades. The additional capacity from Dow adds new resin to an already well-supplied market. In the short-term, sources said Dow has some maintenance activity ongoing at some other North American PE units, so the addition of the new capacity is not expected to be felt by the market in June or even early July. Once it ramps up to higher rates, much of the new material is expected to be destined for the export market, which has been facing some demand challenges this year due to tariff threats in China and Europe, and the potential for a new anti-dumping duty against US and Canadian PE in Brazil. The next new capacity addition is not expected to start up until 2026, with the start-up of an additional 2mn t/yr of HDPE capacity from Chevron Phillips Chemical's joint venture with Qatar-based QE. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
India imposes BIS controls on LLDPE imports
India imposes BIS controls on LLDPE imports
Mumbai, 16 June (Argus) — The Indian government's standards bureau (BIS) has withdrawn the exemption from quality controls that had applied to linear-low density polyethylene (LLDPE) butene, according to a notice in the official government gazette on 12 June. Quality controls were imposed on Indian polyethylene (PE) imports in January 2024 , but emptions were in place for low-density PE extrusion coating, film, blown and cast or pharma, LLDPE butene, hexene and octene grades, metallocene PE grades, base resins of power cable, jacketing and other applications, as well as high-density PE PE80 and PE100 black and pigmented grades. LLDPE butane is no longer exempt, although producers that have already been BIS certified will still be able to export the grade to India, according to market participants. The removal of LLDPE butane from the exemption list is unlikely to have a major long-term impact on the availability of the grade, as all key suppliers are already certified. Demand for LLDPE butane has been flat this year so far and the market remains oversupplied. Ample sources of supply domestically and from overseas have weakened buying interest, and buyers are restocking on a need-only basis rather than purchasing in bulk. India imported 205,000t of LLDPE last year, down from 250,000t in 2023. But imports have risen year on year in 2025 so far, with LLDPE imports at 53,000t in the first quarter compared with 39,000t over the same period a year earlier. By Kabir Dweit Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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