Steam cracker capacity addition: relief in sight

Despite a global benzene slump, Turkey keeps stronger operating rates, aided by regional supply, STAR refinery support, and access to European markets.

Turkey Holds Firm in Soft Benzene Market

India’s styrene trade shifts amid Hormuz disruption

The New Styrene Landscape as China Reshapes Trade

Chlor‑alkali market tightens on Mideast conflict

Brazil PE turns to US amid new duties

Interpreting China's PE Export Growth

June 2026 trade data suggests China's rising PE exports reflect temporary market pressures rather than a durable shift in competitiveness.

What Really Drives Global Polymer Demand Growth?

What Does the EU-US Trade Deal Mean for PE Trade?

LLDPE contract prices vs. Argus PTI: Lessons from 2026

What supply shocks mean for polyolefins strategy

Can pyrolysis scale in time for PPWR?

Inside Europe's Olefins Pricing Structures

Asia’s Olefin Market Structure and Pricing

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Middle East EDC flows to India fall sharply in 1H 2026

Singapore, 26 August (Argus) — Ethylene dichloride (EDC) imports into India from the Middle East fell sharply in the first half of 2026 after the US-Iran war and the closure of the strait of Hormuz disrupted supplies from one of the country's key source regions. Middle East EDC flows into India totalled 49,144t between January and June 2026, according to Global Trade Tracker (GTT) data. India received Middle Eastern EDC only in the first quarter, with recent GTT data showing no imports since then. The figures may lag slightly because of the conflict, market participants said. The total was 73.1pc lower than in January-June 2025, when Middle Eastern EDC accounted for just over 51pc of India's total imports for the year. Lower Middle East supplies have opened the door for higher imports from northeast Asia, southeast Asia and western Europe so far in 2026, but these gains have done little to offset overall losses. EDC imports from northeast Asia into India rose from zero during the first half of 2025 to 10,498t so far this year, while volumes from southeast Asia rose by 40.4pc and those from western Europe by 48.1pc. Is Indian PVC production at risk? Lower Middle East EDC flows reflect the impact of US-Iran war, with producers in the region either continuing to operate at lower rates or idling some production lines to prevent EDC oversupply. Indian polyvinyl chloride (PVC) producers have therefore sourced EDC feedstock from alternative markets, with higher EDC requirements also exacerbated by the closure of a domestic EDC production unit in mid-July . Most EDC shipments into India are delivered on a contractual basis. Higher EDC prices across Asia-Pacific reflect rising feedstock ethylene costs and continued weakness in caustic soda prices, prompting electrochemical unit (ECU) operators to preserve ECU margins through the chlorine chain where possible. Increased EDC demand in southeast Asia and reduced US EDC export availability have also pushed prices higher in recent months. Argus assessed July EDC spot prices at $307-308/t cfr northeast Asia and $282-284/t cfr southeast Asia on 30 July, with recent indications pointing to higher prices so far in August. Argus will assess August EDC spot prices on 28 August. Concerns over lower Middle Eastern EDC flows into India have so far had a limited impact on Indian PVC production, as major importers secured alternative supplies. Indian PVC producers also reported little difficulty passing higher feedstock costs on to the local suspension PVC (s-PVC) market, especially since s-PVC import prices have remained above domestic levels because of higher freight costs. India remains a net importer of PVC, with recent data showing a substantial increase in PVC imports during the first half of 2026 . But the continued closure of the strait of Hormuz could pose a short-term risk to Indian PVC producers if they are unable to secure sufficient feedstock supplies to maintain operating rates. This has led some market participants to consider potential changes in EDC trade flows, including increased offtake from western Europe and northeast Asia during the remainder of 2026. By Michael Vitiello Indian EDC imports '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Petrocuyo dismisses Ensenada shutdown speculation

Petrocuyo dismisses Ensenada shutdown speculation

Sao Paulo, 21 August (Argus) — Argentinian polypropylene (PP) producer Petrocuyo has denied market rumors that its Ensenada plant will shut down indefinitely, saying the facility is scheduled only for a routine maintenance turnaround expected to last around two to three weeks. A company source told Argus that reports circulating in the market about a broader production stoppage were "totally incorrect" and stressed that the company was planning only a short maintenance outage. The source added that Petrocuyo has sufficient inventories to cover customer requirements and does not expect any significant impact on sales or regional supply during the maintenance period. The clarification comes amid heightened market speculation over the status of the Ensenada facility, given the importance of the facility within Argentina's polypropylene supply chain. According to the company source, operations outside the planned turnaround continue normally and the producer is not undertaking any extraordinary measures beyond its usual maintenance activities. The market reaction reflects broader uncertainty across the global polymers industry. Polypropylene producers in Latin America continue to face pressure from weak demand growth, abundant international supply and aggressive competition from imported material, particularly from Asia. These conditions have compressed margins across the value chain and fueled concerns whenever production outages emerge in the region. For Petrocuyo, however, the maintenance appears to be operational rather than structural. The company source said inventory levels remain adequate and downplayed the likelihood of any meaningful disruption to the market. The source also suggested that some of the rumors may stem from misinterpretations of routine maintenance activities in an environment already marked by oversupply and intense competition. Market participants are expected to continue monitoring the outage closely, given Petrocuyo's position as Argentina's sole polypropylene producer. While the Ensenada site is an important supplier of homopolymer PP to the domestic market, the company also operates its Luján de Cuyo plant in Mendoza, which remains in operation and produces a broader range of polypropylene grades. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Europe PE: Market awaits clearer direction for Sep

Europe PE: Market awaits clearer direction for Sep

London, 21 August (Argus) — The European polyethylene (PE) market was calm this week as the summer lull continued to weigh on trading activity. Many market participants were away from their desks, with seasonal holiday closures at many converters' plants also reducing prompt restocking needs – with pockets of prebuying in July also covering some buyers' requirements for August and early September. Many buyers remain in a wait-and-see mode awaiting clearer direction for September pricing. Seasonal restocking activity is expected to pick up in September, and has kept many sellers optimistic of targeting increases in PE prices in the coming weeks. Some sellers have reported pre-buying demand for September from converters looking to hedge against any increases in short term prices. But the demand picture is expected to become clearer in the coming weeks on whether any meaningful support to fundamentals is seen, which could help PE producers widen margins. Upstream crude prices firmed this week after the memorandum of understanding between the US and Iran lapsed, and with vessel traffic through the strait of Hormuz dropping to a record low. Naphtha prompt's price also rose to €675/t on 20 August, from €650/t on 14 August. Naphtha has so far averaged €11/t lower in August – compared with the July average of €656/t – but could moderate to just a €2/t decrease in the average by the end of the month. This backdrop will set the stage for next week's negotiations of feedstock ethylene's September monthly contract price (MCP). Conditions remain challenging in many downstream value chains, which has kept converters mostly err on the side of caution. Import arbitrages remain workable from the US for HDPE and LLDPE grades, and have continued to set the spot price floor in the European market. And with spot prices remaining at wide gaps to contract prices, some buyers held the view of limited upside risk on PE pricing and keeping procurement confined to a need-to basis. Some reports were also heard of competitive offers from the Middle East but logistical bottlenecks persist on shipping from Red Sea ports – particularly with vessel congestion at the port of Jeddah. Converters are also mindful of inventory risks further ahead in the fourth quarter in case of any bearish developments in pricing. There have been some differences between the PE grades, however, with some strengthening seen in LDPE fundamentals. A producer in the Netherlands was heard to have declared force majeure on LDPE supplies earlier in August, which has resulted in tighter supplies on the part of other sellers. Some producers reported being sold out on LDPE volumes for delivery August. And with LDPE supply dynamics being more domestic in the European market, this could continue to lend support to LDPE prices going into September. Low water levels in the Rhine and Danube rivers have continued to affect operating rates at many crackers and polymer plants inland in Europe. Outages persist at some PE plants in central-eastern Europe, and force majeure on supplies remain in place from some plants in that region. This has contributed in keeping PE prices in central-eastern Europe at a premium to northwest Europe and the Mediterranean regions. Against the backdrop of ethylene's August MCP settling at a €42.50/t increase from the July MCP, some PE producers sought as much as €100/t increases in their freely negotiated PE contract prices. Buyers pushed back against any increases in their freely negotiated PE contract prices, arguing these remain disconnected to spot prices and the global market. Settlements were reported in wide ranges, but were concluded at price rollovers in many cases – except for LDPE grades. Some producers reported settlements at increases matching the increase in ethylene's August MCP, while steeper increases of up to €100/t were also reported for LDPE grades. Some buyers also reported securing €20-30/t decreases in their freely negotiated HDPE and LLDPE contract prices, in instances where underlying prices were relatively high. Negotiations are ongoing in some cases for LDPE and LLDPE contracts. For all HDPE grades, the Argus deltas for August were assessed at rollovers. For LDPE and LLDPE butene, the Argus deltas for August will be assessed next week. Spot prices of all HDPE grades and of LLDPE butene were assessed stable this week. It remains to be seen if sellers' targets of securing higher prices for September-delivery volumes come to fruition in the coming weeks. The spot price of LDPE was assessed €50/t higher at €1,200-1,300/t ddp northwest Europe. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Pyrolysis can optimise: CRE

Pyrolysis can optimise: CRE

The cost gap between circular and virgin polymers will narrow over time, but only with investment and regulatory change London, 21 August (Argus) — Pyrolysis yields will improve as the industry matures, boosting availability of circular polymers and reducing the cost gap to virgin polymers, industry association Chemical Recycling Europe (CRE) president and Dutch technology company BlueAlp chief executive Valentijn de Neve tells Argus. "We've already come a long way by influencing the process conditions that mean you minimise gas production, maximise oil production and integrate gas fractions into downstream units to make sure they do not become fuels but become materials," de Neve says. Recouping plastic-derived pyrolysis oil from char and bitumen fractions produced by pyrolysis units, or using them as a standalone product, can also help, he adds. A recent paper by the EU's Joint Research Committee (JRC) stated that circular polymers likely need to cost around three times more than virgin polymers on average for the industry to sustain its costs. CRE's view is that such a large cost gap is similar to that seen in other nascent sustainability transition industries and will narrow over time and with investment, de Neve says. "The JRC rightfully says that circular is more expensive than virgin and that incentives, penalties and enforcements are required to build up capacity," de Neve says. But "CRE thinks this report misses what is possible in terms of development of that price", because the data it uses was gathered from early facilities and it does not factor in improvements in operating rates, scaled-up technologies and innovative business models that various CRE members of are using, he adds. Attracting investment will be the next challenge. European pyrolysis capacity will have to expand by 6-8 times from current rates in order to provide the 10pc recycled content for non-PET contact sensitive plastic packaging by 2030 that the EU Packaging and Packaging Waste Regulation (PPWR) dictates, Argus Consulting says. This necessary scale of expansion far outweighs the current announced project pipeline, Argus data show. But de Neve is confident that there are more than enough projects in the pre-final investment decision stage to meet demand, if investors can be persuaded to pull the trigger and plants can be ramped up to target operating rates. "Operating rates will be sufficient" but regulators need to create an environment that persuades would-be investors to commit, he says. "A couple of pieces of secondary legislation are needed… we need mass balance fast, we need clarity around the enforcement in the right way, and we need... European materials to have a level playing field," he says. One commonly cited regulatory hurdle of PPWR for the industry is its so-called revision clause, which gives the European Commission options to enact changes, delays or exemptions to the 10pc recycled content requirement if it thinks it cannot be achieved. Under the regulation, the commission has until February 2028 to make a final decision. The JRC report represents a positive early sign that the commission thinks enough capacity can be built under the right market and regulatory circumstances, strengthening the case against changes to the regulation, de Neve says. The JRC report is "very clear that building the capacity needed for this regulation is not the issue", he says. BlueAlp is seeing particular interest in developing projects with its technology from private-sector financial institutions and waste management companies, de Neve says. Petrochemicals companies and downstream consumers such as brand owners are also active across the wider industry, he says. However, demand for circular polymers has been weak in the past 12 months. Whether because of regulatory uncertainty, cost cutting or low confidence in the robustness of the supply chain, many converters are in no rush to switch to using more chemically recycled materials in packaging. The pyrolysis industry is going through a tough period, and finding ways to bring demand forward ahead of the 2030 target is key if it is be achieved, de Neve says. "In 2030, there's the mandatory demand for circular content, and today it's a voluntary market. And between now and 2030, that's a time that we all need to bridge", he says. Extended producer responsibility measures with discounts for circular content are a positive step, he says. And a proposal for companies to be able to count recycled content used before 2030 towards their PPWR obligations from that date, which de Neve describes as "pragmatic", is gaining momentum within the industry — although it so far remains unclear whether regulators are open to such a move. "I think the good news is that from waste all the way to brand owners and financial institutions, there's a willingness to invest in this sector and we could attract more capital the moment the rules of the game are further clarified. And with that, I actually am quite optimistic on what is planned for the next eight months in terms of secondary legislation," he says. De Neve was speaking on the Argus Chemical Conversations podcast, "Can pyrolysis develop in time for PPWR?", which is available on the Argus website and podcasting apps. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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