US homes more affordable as incomes rise: NAR

Spanish Market: Petrochemicals
04/02/26

US housing affordability improved in the fourth quarter, extending a trend that emerged during the second half of 2025 after a fourth-month skid earlier in the year.

Growth in personal income outpaced rising home prices in the US during the fourth quarter, improving affordability to the highest levels in more more than a year, new data from the National Association of Realtors (NAR) show.

The NAR's quarterly affordability index rose to 109.1 in the fourth quarter of 2025,its preliminary Housing Affordability Index (HAI) shows. HAI values of 100 show that a family with the median US income has enough to qualify for a mortgage on a median-priced home. An index above 100 signals increasing affordability of a median family income.

Median preexisting single-family home prices rose to $414,900 during the fourth quarter, up by 1.2pc from the same three-month period in 2024. The median family income rose by 4.7pc during the same period. Additionally, the average mortgage interest rate fell to 6.31pc from 6.74pc in the fourth quarter the prior year.

NAR's affordability index remained below 100 in 2023 and 2024, contributing to slower housing demand during the two-year period. But affordability rebounded into the third quarter of 2025 from the prior quarter and continued to improve through the end of the year.

Increasing housing affordability in the US is a bullish demand signal for polyvinyl chloride (PVC) producers and distributors. PVC is widely used in housing construction, and improved home affordability could spur new construction and strengthen PVC demand after two years of lagging consumption.

Housing starts fell to a five-year low in October 2025, the most recent data point, indicating that a recovery in 2026 is unlikely. Mortgage rates need to fall further to induce demand as many would-be buyers remain locked into their current homes with previously-low mortgage rates, sources said.

Rising incomes could alleviate otherwise low consumer sentiment and spur buying interest, while strong home prices coupled with lower borrowing rates could increase interest for new building projects.

But signs currently point to the 2026 building season being a replay of 2025.

By Gordon Pollock

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03/02/26

Brazil’s Dec industrial output lowest since mid-2024

Sao Paulo, 3 February (Argus) — Brazil's industrial output fell by 1.2pc in December from a month prior, marking the steepest decline since July 2024, according to national statistics agency IBGE. All four major categories showed declines, with capital goods and durable consumer goods output down by 8.3pc and 4.4pc, respectively, from November 2025 . Auto, chemicals and metallurgy were among the largest negative contributors, down by 8.7pc, by 6.2pc and by 5.4pc, respectively, from November, IBGE said. Output of petroleum coke, oil products and biofuels increased by 5.4pc in December from the previous month, after three consecutive monthly drops, while the extraction industries pushed up output by nearly 1pc. Transformative industry ended the year at 1.9pc below November 2025. IBGE data show. Despite month-to-month decreases, December's industrial output rose by 0.4pc from a year earlier. Plastic materials and machinery and equipment represented the largest contributors to the increase, which is also due to an additional workdays this year, IBGE said. 2025 output ticks up Brazil's 2025 industrial output reached a third increase in a row at 0.6pc above a year earlier and pre-pandemic levels, following a 3.1pc rise in 2024, IBGE said. Extraction and food industries were among the largest contributors to the increase, up by 4.9pc and 1.5pc, respectively. Machinery and equipment, metallurgy, chemicals and pharmacy products pushed up the Brazilian industry in 2025, despite a 5.3pc slump in the production of oil products and biofuels. Production of durable and intermediate goods — feedstocks for industries that do not directly reach the final consumer — rose by 2.5pc and 1.5pc in 2025, respectively, from a year earlier. Brazilian auto industry, crude and natural gas production helped lead gains, IBGE said. Brazil's central bank has kept its target interest rate stable at 15pc since June 2025. Brazil's headline inflation decelerated to an annual 4.26pc in December . By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Brazil petchem industry flags Reiq 2026 gap

02/02/26

Brazil petchem industry flags Reiq 2026 gap

Sao Paulo, 2 February (Argus) — Brazilian chemical and petrochemical industry associations are urging the federal government to deliver a rapidfix for the 2026 gap in the Special Chemical Industry Regime (Reiq), warning that regulatory uncertainty is accelerating plant shutdowns and job losses across key production hubs. In a joint letter sent on 26 January to vice-president and industry minister Geraldo Alckmin, labor unions and industry groups — including Abiquim — said presidential vetoes affecting Reiq in December by removing key tax-relief provisions and carried into the newly enacted Special Sustainability Program for the Chemical Industry (Presiq), which focuses on the national petrochemical chain modernization,have created an "immediate and severe" impact on domestic producers, mainly due to the sudden loss of a long-standing cost-reduction tool with no transitional safeguards. Companies in Sao Paulo state have already closed units and cut shifts in Cubatao and Guaruja, according to the groups. Industry groups argue that without the Reiq tax relief, historically centered on PIS/Cofins reductions for feedstocks such as naphtha and natural gas and effectively revoked by the presidential vetoes — Brazil's chemical chain faces intensified competitive pressure from global oversupply, foreign subsidy schemes and aggressive pricing from Asian and Middle Eastern exporters. The regulatory gap is prompting irreversible divestment decisions, threatening the core of Brazil's petrochemical complex, they say. The entities called on the Ministry of Development, Industry, Trade and Services (Mdic) to restore predictability for 2026, saying the issue is no longer a tax debate but a strategic decision for Brazil's industrial competitiveness and employment base. The government has recently highlighted industrial policy priorities through its New Brazil Industry program and strengthened trade-defense tools, but the signatories said action on the Reiq must come "urgently, preferably in January," to avoid further disruption. History President Luiz Inacio Lula da Silva vetoed provisions in December 2025 that would have extended Reiq benefits into 2026 or ensured an automatic transition to the Presiq framework. The administration cited fiscal responsibility and the absence of compensatory budget measures. With Presiq scheduled to begin only in 2027, the vetoes leave a regulatory gap in 2026. By Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Fukoku set to launch US rubber parts plant

30/01/26

Fukoku set to launch US rubber parts plant

Houston, 30 January (Argus) — Manufacturer Fukoku plans to open a US plant for industrial rubber components, with operations scheduled to begin in January 2027. The Japan-based company has partnered with its consolidated Korean subsidiary, Fukoku Korea, to develop the facility through a newly established US entity, FKC America. The 50:50 joint venture aims to expand into new markets by combining products already used by Hyundai Motor with a new product lineup. The plant, located on a 59,489m² (14.7-acre) site in Virginia, will produce rubber products for damper pulleys, thermally conductive gap fillers and other battery-related products. The companies have pledged $7.4mn in capital for the project. Fukoku has maintained a US presence since 2001 through Fukoku America, based in Laurens, South Carolina, where it manufactures, warehouses and ships motor vehicle components. By Joshua Himelfarb Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

PE, PP margins hit decade low: LyondellBasell

30/01/26

PE, PP margins hit decade low: LyondellBasell

Houston, 30 January (Argus) — Low polyethylene (PE) inventories in the US will drive integrated margin recovery this year after 2025 had the lowest US polyolefins margins in a decade, LyondellBasell said today. North American integrated-PE margins averaged $580/t in 2025, putting them $250/t below the historical average of $830/t. North American polypropylene (PP) margins were $40/t, seven times lower than the historical average of $290, according to LyondellBasell. Olefins production volumes fell in the fourth quarter because of planned and unplanned facility maintenance. Inclement weather in January further disrupted production through in beginning of 2026. LyondellBasell expects PE prices to rise in the next quarter as buyers seek to replenish diminished stocks. The company expects an operating rate of 85pc of its olefins and polyolefins Americas assets, up from 75pc last quarter, in anticipation of this increased demand. Demand for PP remains low as the durable goods market is showing no sign of recovery. Interest rates cuts and softening inflation are expected to improve demand, but consumer confidence is lagging. Oversupply in China is further dragging down margins in the global market. "[Last year] was another exceptionally challenging year," said chief executive Peter Vanacker. "Industry margins remaining deeply depressed across all of our core businesses. Industry margins were approximately 45pc below historical averages, even worse than the already difficult conditions we saw in 2024." The company expects modest improvement in the first quarter due to the higher PE prices as well as improved seasonal demand and a resilient packaging market. By Maya Porter Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Eastman raises rPET output

30/01/26

Eastman raises rPET output

Houston, 30 January (Argus) — US recycling company Eastman's Kingsport, Tennessee, molecular recycling facility had its strongest year for chemical recycling in 2025, producing more than 2.5 times the amount of recycled content that it produced in 2024. The Kingsport facility generated approximately $60mn in incremental earnings in 2025 compared with 2024, as chemically recycled materials saw increased use from major brands including Pepsi. Eastman expects that momentum to continue into 2026 and projects about $39mn in additional circular economy earnings as rPET contract volumes increase and demand for chemically recycled content strengthens. "We are really the long-term solution to chemical recycling," said Mark Costa, board chair and chief executive officer. He added that mechanical recycling yields remain low because the process only cleans 25-35pc of clear bottles. Mechanical rPET degrades faster than expected, causing yellowing, graying, and even structural issues such as bottle collapse during case stacking, the company said. Eastman plans to expand the Kingsport facility's production capacity by 130pc to increase supply growth while development of a second chemical plant remains paused. The second facility is on hold following the loss of a US Department of Energy grant in June 2025. However, the Kingsport expansion and improved efficiency will allow Eastman to continue scaling chemical recycling production while maintaining strong cash flow. The company generated nearly $1bn in operation cash flow in 2025, reinforcing its ability to continue investing in circular technology despite market uncertainty. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US homes more affordable as incomes rise: NAR

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Brazil’s Dec industrial output lowest since mid-2024

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