Heavy olefins
Overview
Global butadiene production and demand are dominated by northeast Asia. Although the region continues to add both supply and derivative projects, there have been market inefficiencies that have resulted in deep sea imports into the region. Accurate and timely analysis will help producers, consumers and traders navigate these turbulent times.
The C5 and hydrocarbon resins industry has experienced a fundamental shift in the past few years, going from several acute shortages to a glut of products in the markets. Producers, industrial chemicals companies, chemical distributors, traders and technology providers all need to understand how this will play out, especially in light of new entries into the global market. Argus’ C5 and Hydrocarbon Resins Service is the only global service of its kind.
Our experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest heavy olefins news
Browse the latest market moving news on the global heavy olefins industry.
Eni seeks buyer for Brindisi cracking unit
Eni seeks buyer for Brindisi cracking unit
Milan, 29 April (Argus) — Italian energy company Eni has decided to sell its cracking unit at Brindisi in southern Italy and will appoint an adviser to find a buyer, Italy's industry ministry said. "With regard to the Brindisi site, Eni has told the minister it will pick a top international adviser to identify an industrial player interested in buying the activity earmarked for conservation [cracking]," the ministry said. The statement follows a meeting between industry minister Adolfo Urso and Eni on the group's plans, first announced in 2024, to transform three sites operated by Versalis, Eni's chemicals unit, in Puglia and Sicily. A sale of the Brindisi site, including the polyethylene plants, had not previously been contemplated when the cracking unit was shut early last year. Eni declined to comment on media reports naming US bank JPMorgan as a potential adviser. Versalis closed the Brindisi cracker in March 2025. The unit had ethylene capacity of 410,000 t/yr, propylene capacity of 220,000 t/yr and butadiene capacity of 145,000 t/yr. Versalis has continued to operate a 216,000 t/yr high-density polyethylene (HDPE) unit and a 205,000 t/yr linear low-density polyethylene (LLDPE) unit at the site using imported ethylene. LyondellBasell also continues to operate a 260,000 t/yr polypropylene plant at Brindisi. The ministry also said Eni's plans to build a lithium battery gigafactory at the Brindisi site for energy storage purposes were on track. Eni set up a joint venture with Seri Industrial in September last year, called Eni Storage Systems. At Priolo in Sicily, the ministry said the permitting process to reconvert the Versalis site was progressing. Eni and Kuwait's Q8 have committed to build and operate a new 500,000 t/yr biorefinery at the site, scheduled for completion in 2028. "Work on dismantling the cracking unit started in March," the ministry said. Work at Ragusa in Sicily to build a skills centre focused on safety and maintenance, alongside facilities to support bio and sustainable supply chains, is also under way, the ministry added. A further meeting between the ministry and Eni to update on the Versalis reconversion plans is scheduled for 25 June. By Stephen Jewkes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
South Korea approves Hyundai Chemical, Lotte merger
South Korea approves Hyundai Chemical, Lotte merger
Singapore, 25 February (Argus) — South Korea's trade, industry and resource ministry (Motir) has approved chemical producers Hyundai Chemical and Lotte Chemical Daesan's restructuring plans along with a support package on 25 February. Hyundai Chemical and Lotte Chemical jointly applied to merge their plants in November 2025 . Hyundai Chemical is a joint venture between Hyundai Oilbank and Lotte Chemical. This is the first project approved under South Korea's government-led rationalisation efforts across the Daesan, Ulsan and Yeosu petrochemical complexes. These efforts were in response to the industry's prolonged losses since 2021, driven by rapid capacity expansions, particularly in China. Under the approved plans, Lotte Chemical will merge its Daesan petrochemical plant with Hyundai Chemical, integrating the naphtha cracking centre (NCC) and downstream units. Parent companies Lotte Chemical and Hyundai Oilbank will invest 600bn Korean won ($420mn) each and will share equal ownership of the newly integrated corporation. The restructuring is expected to take three years, during which Lotte Chemical will suspend its 1.1mn t/yr ethylene cracker in Daesan, and reduce operations of low-profit downstream facilities to curb oversupply in the Daesan petrochemical complex. The newly integrated corporation aims to focus on producing higher value-added and eco-friendly products instead of general-purpose products, Motir said. The South Korean government will also provide a customised support package worth W2.1 trillion, which will include financial, taxation, regulatory, cost structure improvement, employment, and technology development assistance for the firms' restructuring implementation. But the specific financial measures are to be finalised by the Korean Development Bank after consultations with institutional creditors. Other key producers including YNCC, GS Caltex, LG Chem, S-Oil, SKGC, and KPIC also submitted their business restructuring proposals in December 2025, and are under government review. The submitted plans would meet the collective target to reduce the nation's naphtha cracking capacity by 2.7mn-3.7mn t, according to the ministry. But revisions to the plans have been requested, and finalised drafts for restructuring plans for the Yeosu and Ulsan petrochemical complexes are expected by the end of the first quarter of 2026, said market sources close to South Korean cracker operators. By Angie Liew Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
EU sets definitive duties on Taiwanese and Korean ABS
EU sets definitive duties on Taiwanese and Korean ABS
London, 13 February (Argus) — The European Commission has imposed definitive duties on imports of acrylonitrile-butadiene-styrene (ABS) from Taiwan and South Korea into the EU. The duties are set on a cif basis at the EU border and typically apply for five years. South Korea's LG Chem and Lotte Chemical received duties of 7.5pc and 5.2pc, respectively, while other unnamed Korean producers were assigned a 7.5pc rate. The duty for LG Chem is 3.8 percentage points higher than the provisional level, while Lotte Chemical's declined by 0.6 percentage points. Duties for other unnamed Korean companies rose by 1.7 percentage points. Taiwanese firms Chimei and Grand Pacific Petrochemical were each assigned a 10.9pc duty, up by 0.1 percentage points from the provisional level. Formosa Chemical and Fibre received the highest rate at 21.7pc, unchanged from the provisional duty. Duties on other unnamed Taiwanese producers also remained unchanged at 21.7pc. The definitive measures follow provisional duties introduced in August 2025. Several producers told Argus the provisional duties did not provide enough of a deterrent to curb imports. During the investigation period, when imports had to be registered with EU customs, the commission found that volumes rose by 6pc on a monthly average basis before provisional duties were imposed. Import prices increased by 2-3pc in the same period. On this basis, it concluded that higher inflows at slightly firmer prices were not sufficient grounds to apply definitive duties retroactively. The definitive rates will apply from 12 February 2026. South Korea and Taiwan are Europe's two largest ABS suppliers. Europe imported about 195,000t of ABS from the two countries during January-November 2025, according to Global Trade Tracker (GTT). Imports in 2025 were broadly in line with previous years, averaging around 200,000 t/yr since 2021. The introduction of provisional duties in the third quarter did not appear to affect volumes, with third-quarter imports up by about 2pc on the year. Mid-fourth-quarter 2025 figures were roughly half of full fourth-quarter imports in 2024. By Sebastian du Plessis 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
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.
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