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.
UK opens anti-dumping probe into US LLDPE imports
UK opens anti-dumping probe into US LLDPE imports
London, 1 July (Argus) — The UK's Trade Remedies Authority (TRA) has initiated an anti-dumping investigation into imports of linear low-density polyethylene (LLDPE) from the US following a complaint filed by Ineos Olefins & Polymers UK, the country's sole producer of the grade. The investigation, which began on 1 July, will assess Ineos' claims that US-origin LLDPE has been sold in the UK at dumped prices, injuring the domestic industry. Ineos said US export prices were lower than normal value and that the resulting imports hurt the UK market through lower sales, lost market share, weaker prices, reduced profitability, withdrawn investment and fewer jobs. The dumping probe covers 1 January-31 December 2025, while the injury assessment spans 1 January 2022-31 December 2025. The UK imported 102,400t of LLDPE from the US in 2025, under the HS codes 39011010 and 390140, according to Global Trade Tracker data. This was up from 81,100t in 2024 and 50,000t in 2023. LLDPE is widely used in packaging films and other flexible plastic applications. Interested parties have until 16 July to register for the investigation. The authority plans to issue questionnaires on 24 July, with responses due by 24 August. Verification work is scheduled for September and October. The TRA said it may propose provisional measures between October and December if it finds enough evidence of dumping and injury. Such measures could require importers to provide guarantees against potential anti-dumping duty. The TRA expects to publish preliminary findings in February 2027 and make a final recommendation to the secretary of state for business and trade in June 2027. By Yohanna Pinheiro Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
HPCL on track to start Rajasthan petchem units in 4Q
HPCL on track to start Rajasthan petchem units in 4Q
Mumbai, 1 July (Argus) — Indian state-owned refiner Hindustan Petroleum (HPCL) remains on course to start its petrochemicals unit at its new Pachpadra refinery in the western state of Rajasthan during the fourth quarter of 2026. The new refinery — HPCL Rajasthan Refinery (HRRL) — was expected to start in April but was delayed until 4 July after a fire broke out in the heat exchangers stack in April. The company remains confident about bringing on some of the capacity online by November or December, Saugata Chaudhuri, head of petrochemicals, HPCL, told Argus on the sidelines of the Injection, Blow Moulding & PET International Business Summit & Exhibition in Mumbai on 30 June. "The fire was localized, and the best part was we could arrest the issues very quickly. So, we could reposition ourselves and inaugurate the refinery soon," Chaudhuri said. Focus will now shift to the timely startup of the petrochemical units, he added. The facility will house a 1mn t/yr polyethylene (PE) plant, with two linear-low density polyethylene (LLDPE)/high-density polyethylene (HDPE) swing production lines of 500,000 t/yr each. An integrated 1.2mn t/yr dual-feed cracker will supply the ethylene to the PE plants. The PE plant will also produce metallocene-grade LLDPE and HDPE pipe PE100 grade. The complex will also produce polypropylene (PP) with a capacity of 1mn t/yr. India is import-dependant on several grades of PE, PP. The specialised grades will help substitute imports, helping converters during critical times of geopolitical uncertainties and supply disruptions, Chaudhuri said. India's PE imports in April in 2026 slumped to the lowest level in four years due to the effective closure of the strait of Hormuz. Exports from the UAE — traditionally India's largest PE supplier — led the decline, falling by 79pc between March and April. Argus -assessed PP raffia prices at $1,100-1,140/t cfr India for the week to 26 June, down from $1,350-1,430/t cfr India on 10 April. LLDPE prices were assessed at $1,090-1,150/t cfr India for the week to 26 June, compared with $1,430-1,500/t cfr India on 10 April. Eyes on exports HPCL also remains confident on potential export opportunities for some of the specialised products. "We are keenly looking at European markets because some northeast Asian players are active there," Chaudhuri said. "Even in west Africa there's a lot of appetite and there are some Indian players who are active there, so we want to leverage that relationship," he added. South Korea exported 555,000t of PP to the 27 EU member countries, excluding the UK, in 2025, while India's exports totalled at just 19,670t, according to data from Global Trade Tracker. India and the EU are likely to finalise and sign a free trade agreement by the end of the year, European Commission President Ursula von der Leyen said last month. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US PE export prices approach pre-Iran war levels
US PE export prices approach pre-Iran war levels
Houston, 26 June (Argus) — US polyethylene (PE) export prices fell sharply for the 10th consecutive week to 26 June, taking prices for most grades almost back to pre-Iran war levels, as producers offered end-of-quarter sales to help clear out inventories. Export prices fell by between 4.5¢/lb and 11.5¢/lb on an fas Houston basis, depending upon grade, for the week ended 26 June. Prices were in some cases in a wide range, with not all producers offering at the lowest levels. "Producers have found some large traders to help them clear inventories," said one US PE trader. "Not all manufacturers are participating." Prices started declining at the end of April, when the global market was pressured by low-priced resin from China and weak global demand. With this week's decline, prices are near, or in the case of high density polyethylene (HDPE) high molecular weight film, actually lower than on 27 February, before the US war with Iran began. HDPE high molecular weight film prices were assessed at 39¢/lb on 26 June, 4.5¢/lb lower than levels on 27 February. Other grades, such as HDPE blow molding, HDPE injection and linear low density polyethylene (LLDPE) butene are between 3.5¢/lb-6.5¢/lb higher than levels on 27 February. Low density polyethylene (LDPE) prices are declining also, but have held a premium to other grades, with prices still 11¢/lb higher than pre-war levels. Last week, traders said some of the lowest prices were limited to sales in China. But this week, traders said there are no restrictions on where the product can be sold, as long as it is outside of the North American market. "There are no restrictions. The producers are asking us to take more," said another US PE trader. "They are feeling some pressure." The pressure has come from a number of factors, including: low prices out of China which pressured the global market lower, high producer inventories in the US and Canada, weak global demand, and concerns about volumes that will come out of the Middle East once the strait of Hormuz fully opens. Once producers work down their inventories, some sources said it is possible that prices could rebound slightly. However, one trader said a significant price increase is not likely, because then the material sold this week at low prices could end up being re-exported back to the US. "If they raise prices above 50¢/lb again, all of these tonnes sold will make a round trip and come back," said the trader. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India restores industrial LPG supply as imports rise
India restores industrial LPG supply as imports rise
New Delhi, 26 June (Argus) — The Indian government has restored LPG supplies to industrial and commercial consumers to pre-war levels, supported by rising imports this month, according to a government notification issued late on 25 June. New Delhi has also directed refiners to limit the diversion of propane and butane streams to LPG production and use them instead as petrochemical feedstock, reversing its earlier mandate to prioritise LPG output, the notification added. The shift in policy has come on the back of India's rising LPG imports from the US, Kpler data show. India is set to receive its highest volume of US LPG this month at 1.09mn t, making up 60pc of overall LPG imports, predictive volumes from Kpler show. The US volumes include both term and spot cargoes booked by Indian importers over the last two months. Supplies from Middle East also increased in June and currently total at 617,000t, up from 381,000t in May, but lower from 1.69mn t in February before the war started, Kpler data show. Shipments from the UAE are set to hit 224,000t in June — the second highest supplier after the US. The UAE has been using shuttle vessels to move LPG from Adnoc's Ruwais terminal to Sohar in Oman, where it gets transferred to larger gas carriers. India-bound Very Large Gas Carrier (VLGC), NV Sunshine, is carrying over 44,000t of LPG for state-run Indian Oil (IOC) for delivery at Dahej on 28 June, after conducting a ship-to-ship transfer on 16 June at Sohar in Oman, Vortexa and Kpler data show. Most of India's LPG imports from the Middle East are undergoing ship-to-ship transfers near Sohar in Oman or the Gulf of Kutch near India, the data show. Industrial demand Typically, India's industrial LPG demand stands at 2.9mn t/yr, accounting for 9pc of the country's total LPG demand across sectors including hospitality, food services, agriculture, manufacturing, pharmaceuticals, healthcare and education. In May, industrial LPG consumption was at 195,100t, down by 12.6pc on the year, but up by 4pc on the month, as supplies were restored to some extent, Indian oil ministry data show. Bulk LPG supplies — delivered by tanker truck and stored on-site in large pressure vessels — to manufacturing, processing and refining users have been restored to 50pc of pre-war levels, the notification said. India's annualised bulk LPG demand stands at 1.1mn t, or 3pc of overall LPG demand. Bulk LPG supplies totalled 10,800t in May, down by 83pc on the year and 9pc on the month, oil ministry data show. New Delhi has also said the increased allocation of propane and butane streams for non-LPG uses will proceed without affecting domestic LPG availability, while keeping aggregate indigenous LPG production at no less than 40,000t/d. Domestic LPG production had reached 52,000 t/d in May up from 50,000 t/d in April, a government official told reporters in New Delhi. Support for petrochemicals The new order will help raise output of key petrochemicals, including polypropylene (PP). Supplies of packaging material have remained tight, prompting Indian buyers to source from exporters in China and southeast Asia. About 80pc of India's PP output was hit by feedstock curbs, Argus estimates show. Normalised feedstock supplies will allow several petrochemical plants, such as Mangalore Refinery and Petrochemicals (MRPL), to restart PP units. But an Indian producer said it would still take some time for domestic supplies to reach pre-war levels. The easing of restrictions could also prompt the Indian government to reinstate import duties on petrochemicals, as prices in other parts of Asia have receded, a Mumbai-based trader said. In April, New Delhi waived customs duties on 40 petrochemical products, including polyethylene (PE), polyvinyl chloride (PVC) and PP, to offset extra costs for domestic industries. PP buying in the industrial belts of Morbi and Rajkot in Gujarat have slowed as an immediate impact, another Indian producer said. Argus assessed PP raffia prices at $1,180-1,270/t cfr India for the week to 19 June, down from $1,350-1,430/t cfr India on 10 April. Argus assessed linear low-density polyethylene (LLDPE) prices at $1,210-1,270/t cfr India for the week to 5 June, compared with $1,430-1,500/t cfr India on 10 April. By Rituparna Ghosh and Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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