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.
Presiq may boost Brazil's petchems sector
Presiq may boost Brazil's petchems sector
Sao Paulo, 26 June (Argus) — Brazil's proposed special sustainability program for the chemical industry (Presiq), under review in the lower house, marks a strategic shift in the country's industrial policy for the chemical and petrochemical sectors. With the expiration of the special regime for the chemical industry (Reiq) set for 2027, Presiq emerges as a more modern alternative aligned with sustainability and innovation goals. Reiq is a fiscal incentive mechanism that reduces VAT-like PIS/Pasep and Cofins federal taxes on feedstocks used in chemical and petrochemical production, immediately lowering operational costs for qualifying companies. In contrast, Presiq is a broader industrial policy framework still under discussion, intended to succeed Reiq with a more strategic focus. Unlike Reiq, which focused primarily on tax relief, Presiq introduces a model based on environmental and technological commitments. The concept is straightforward: companies in the sector can access benefits if they allocate part of their resources to sustainable investment such as plant modernization, energy efficiency, emissions reduction and waste management. In addition to maintaining Reiq's tax reductions, Presiq aims to unlock further benefits such as additional tax credits for capacity expansions, access to public financing for innovation and sustainability projects and regulatory support for initiatives aligned with Brazil's reindustrialization and green chemistry priorities. This approach aims not only to revitalize the industry but also to reposition it within a global context that increasingly demands environmental responsibility. Brazil's chemical industry currently operates at around 60pc of its installed capacity, the lowest level since the 1990s. A lack of investment, outdated technology and competition from imports have eroded the sector's competitiveness. Analysts consider Presiq to be a critical tool to reverse this trend. By encouraging modernization and innovation, the program could unlock a new growth cycle, with gains in productivity, sustainability and value creation. Braskem, the country's largest petrochemical company, has expressed support for the program and announced investments in its Rio de Janeiro facility. The company plans to replace naphtha — its traditional and costly feedstock — with ethane derived from Brazil's pre-salt gas reserves, which is both cheaper and cleaner. This strategic shift, expected to be supported by Presiq funds, represents a move toward cleaner and more competitive production. Braskem's new leadership under chief executive Roberto Ramos signals a broader restructuring effort. The company aims to recover market value and become more attractive for a potential sale, while maintaining controlling company Novonor, formerly known as Odebrecht, as a shareholder. Diversifying feedstock sources, including importing gas from Argentina's Vaca Muerta shale formation, is part of a strategy to reduce costs and improve efficiency. Presiq also complements recent government efforts to protect the domestic market. Import tariffs on certain chemical products have been raised to 20pc from 12.6pc and anti-dumping duties on US-origin PVC have jumped to 43.7pc from 8.2pc. While these measures aim to curb foreign competition and support local producers, Brazil's domestic output still falls short of meeting demand. As a result, imports are likely to continue, albeit from alternative sources such as Egypt, Argentina and Colombia. Despite a challenging global environment, marked by overcapacity and lower prices, Brazil's polymers market shows signs of resilience. Domestic demand continues to grow, albeit modestly, suggesting underlying strength in the sector and the broader economy. Without macroeconomic constraints such as high interest rates — currently at 15pc in Brazil — consumption could be even stronger. In this context, Presiq stands out as a key catalyst. If successfully implemented, the program could stimulate investment in new production capacity, making it more modern, cleaner and better managed. While no vote date for the Presiq bill has been scheduled, it could advance without a full floor vote unless formally challenged, positioning it as a key step toward a more strategic and sustainability-driven industrial policy. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Indian quality controls for PVC set for December 2025
Indian quality controls for PVC set for December 2025
Singapore, 23 June (Argus) — The implementation of Bureau of Indian Standards (BIS) quality controls for polyvinyl chloride (PVC) imports into India is now set for to 24 December 2025, extended from 24 June 2025. The extension was announced late on 20 June in the Gazette of India , signalling a third extension in the implementation of BIS quality controls on PVC imports. An initial implementation date of 26 August 2024 was set by India's Department of Chemicals and Petrochemicals (DCP), followed by an extension to 24 December 2024 and a second extension to 24 June 2025 . Some progress is noticeable, but is it enough? There are 30 PVC homopolymer production units outside of India that are currently listed as BIS certified as of 23 June. This includes key production units in Japan, South Korea, Taiwan, Thailand, Indonesia, Vietnam and Malaysia, which accounted for around 44pc of total imports into India in 2024, according to latest data from Global Trade Tracker (GTT). Some units in the US, Germany, France, Egypt, Colombia and Mexico are also included in the list, but other US and European production units are either still waiting for BIS audits to be conducted at their plants or are waiting to hear back from BIS agents after submitting their applications for audit. This is a significant improvement since the previous implementation date of 24 December 2024, when a total of 14 PVC homopolymer production units were BIS certified, predominantly in Japan, Taiwan and South Korea. Chinese PVC producers, which accounted for around 40pc of total imports into India in 2024, have also yet to receive BIS certification to supply PVC into India. India needs to import a significant share of its PVC supply before the start of new domestic capacities from 2026 onwards and an extension to the implementation of BIS quality controls is likely because some key exporters are still waiting to receive BIS certification, market participants said. Suspension PVC (s-PVC) import prices into India were assessed at $680-720/t cfr India on 20 June 2025, while paste PVC (e-PVC) import prices were assessed at $940-1,020/t cfr India. By Michael Vitiello India's PVC imports '000t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
PureCycle raises $300mn for more PP recycling
PureCycle raises $300mn for more PP recycling
Houston, 17 June (Argus) — US polypropylene (PP) recycler PureCycle Technologies said it has raised $300mn to build 1bn lbs/yr of new recycling capacity before 2030 in the US, Europe and Asia. PureCycle turns PP plastic waste into a product that can be recycled and reused multiple times. PureCycle currently operates an Ironton, Ohio, facility with a nameplate capacity of 107mn lbs/yr. It previously announced plans for another facility in Augusta, Georgia, but with the new funding will accelerate expansion plans in Rayong, Thailand, and at the Port of Antwerp's NextGen district first. The Thailand and Antwerp plants will each have a capacity of 130mn lbs/yr, while the Augusta expansion, which will utilize second generation technology, will have a capacity of 300mn lbs/yr. PureCycle is partnering with Integrated Petrochemical Pioneer (IRPC) to construct the PP recycling facility in Rayong. Construction will begin in late 2025 and will become operational mid-2027. Work on the Antwerp and Augusta facilities will begin in 2026 and the plants will be operational in 2028 and 2029, respectively. PureCycle said it opted to proceed with the Thailand and Antwerp project before the Augusta expansion because both sites have existing infrastructure and access to feedstocks, which will bring down construction and operation costs and bring the facilities online faster. By Jeb DiSorbo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
LyondellBasell agrees sale of select European assets
LyondellBasell agrees sale of select European assets
London, 17 June (Argus) — Petrochemicals firm LyondellBasell is in exclusive negotiations with Munich-based industrial investment firm Aequita regarding the sale of four olefin and polyolefin assets in Europe. The deal includes its integrated cracker and polyolefin assets in Berre, France, and Muenchsmuenster, Germany, as well as stand-alone polypropylene sites in Carrington, UK, and Tarragona, Spain. The deal is contingent on local council approval and is expected to close in the first half of 2026, LyondellBasell says. The sites were part of six put under strategic review in May 2024. The assets "represent a scaled olefins and polyolefins platform strategically located in proximity to a long-standing customer base", the firms say. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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