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.
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.
Brazil's chemical industry decries new US tariffs
Brazil's chemical industry decries new US tariffs
Sao Paulo, 22 July (Argus) — Brazil's chemical industry association Abiquim said the newly confirmed 25pc US tariff on Brazilian exports is unjustified, arguing the measure targets a sector in which the US already holds a trade surplus and could increase costs for US manufacturers. The US exported about $11.5bn of chemicals to Brazil in 2025 and imported around $2.1bn, leaving a trade surplus of more than $9bn in favor of the US, Abiquim said. While tariff exemptions cover 493 of the 1,177 chemical HS6 codes and 64-71pc of export value, 684 codes remain subject to the additional 25pc duty. The association estimates the measure could add about $66mn in costs by the end of 2026, or $133mn/yr. Coatings, synthetic textile fibers, soaps and detergents are expected to be among the most affected segments. Abiquim called for the Brazilian government to draw up support measures for companies and to keep negotiating with Washington to expand the list of exempted products. By Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US housing bill to become law without Trump
US housing bill to become law without Trump
Houston, 10 July (Argus) — A bill aimed at improving US housing affordability and approved by Congress is set to become law today without the signature of President Donald Trump, a win for the homebuilding sector. The ROAD to Housing Act contains over 50 provisions designed to improve housing affordability, including streamlining federal permitting processes, expanding access to government lending programs, and creates a pilot home repair grant program to shore up an aging housing stock. The bill has been lauded by the homebuilding sector, which in recent years has struggled with poor consumer demand and elevated borrowing rates that have stymied both mortgage applicants and homebuilders seeking financing for projects. The "landmark legislation would expand housing opportunities for buyers and renters, strengthen homeownership, and help tackle the affordability challenges facing communities nationwide", the National Association of Home Builders said last month. The bill was approved by the US House of Representatives and Senate with broad bipartisan support, but its status has been in limbo for over a week after Trump cancelled a planned signing ceremony scheduled for 24 June in an attempt to force passage of an unrelated bill that would implement voting restrictions. "I will not sign the Housing Bill, which has been fully approved by Congress and sent to the White House, in PROTEST over the fact that the United States Senate is not capable of passing THE SAVE AMERICA ACT," Trump said Friday on social media, referring to the voting bill. Nevertheless, the housing legislation is set to become law Friday. Under the Constitution, bills presented to the president become law in 10 days, excluding Sundays, if no action is taken. The bill officially reached Trump's desk on 29 June. Trump is highly unlikely to veto the bill, a move that Congress likely could override given the legislation's broad support. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US/Canada June PE contracts settle down 15¢/lb
US/Canada June PE contracts settle down 15¢/lb
Houston, 9 July (Argus) — June contracts in the US/Canada polyethylene (PE) market settled down by 15¢/lb, the first decrease since May 2025, as high inventories and lower export prices forced producers to give back some of the 45¢/lb in increases added since the beginning of the US-Iran war. The decline came following extended negotiations with some producers attempting to hold the decline to 10¢/lb. However, when faced with enough competitive offers at a decline of 15¢/lb, even those producers agreed to the lower settlement. The price decline follows steep declines in export prices, which have fallen by more than 30¢/lb, depending upon grade, since late April. Using LLDPE butene as an example, prices are down by 31.35¢/lb since reaching a peak on 17 April. Export prices began to decline in late April as low prices out of China pressured global values. The decline continued in May, as US and Canadian producers added more than 800mn lb to inventories at the end of the month on a combination of healthy production levels and weak domestic and export demand. Market participants expect July contracts to fall further, with some participants saying they expect prices to be down by at least 30¢/lb by the end of the month. The drop of 15¢/lb "is not enough", said one US PE buyer. "It seems like a lot, and it is a lot, but it is not enough." The buyer said that with producers selling to the export market at prices more than 20¢/lb below US contract levels, they are putting domestic customers at a disadvantage to Asian converters. Asian converters can produce finished goods using the lower-priced resin and send that product back to the US, undercutting US converters, particularly for items such as film, which is easily shipped. Some market participants suggested that the recent escalation of the Middle East war could shift sentiment and eventually price direction. If crude prices continue to rise, it could push global PE prices higher, which might allow US producers to raise their prices again. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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