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.
Innova declares FM on Triunfo complex SM, PS
Innova declares FM on Triunfo complex SM, PS
Houston, 7 May (Argus) — Brazil-based styrenics producer Videolar-Innova (Innova) declared force majeure (FM) on operations at its Triunfo, Brazil, complex on 6 May following floods that impeded logistics in and around the state of Rio Grande do Sul. The floods starting on 1 May led to a temporary preventative shutdown of the complex on 3 May, the company said in a letter to customers. Blocked roads and highways prevented feedstock from reachign the site. The company continues to monitor the situation to determine when a safe restart can commence. The letter did not detail allocation specifications to customers. The complex includes a 199,000 metric-tonne (t) ethylbenzene-based styrene monomer (SM) unit, according to Argus data. Market sources said prompt styrene purchases from the region surfaced near the $1,350/t-level for small volumes this week, but counterparty confirmation was unavailable by market close. Spot styrene discussions last surfaced at $1,250-1,350/t on Monday. Innova owns and operates two derivative polystyrene production units in Manaus, Brazil. The Triunfo petrochemical site also produces general-purpose polystyrene, high-impact polystyrene and expandable polystyrene, according to the company website. By Nicole Johnson and Jake Caldwell Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Floods halt firms' operations in Brazil's south
Floods halt firms' operations in Brazil's south
Sao Paulo, 6 May (Argus) — Several Brazilian companies have suspended operations in the southern state of Rio Grande do Sul because of heavy rainfall that has caused severe floods and infrastructure damage. Flooding from the record rains has left at least 83 dead with 111 people missing, according to the state government. More than 23,000 people have been forced from of their homes amid widespread damage, including washed out bridges and roads across several cities. The dam of the 100MW 14 de Julho hydroelectric plant, on the Antas River, ruptured last week under the heavy rains . Power generation company Companhia Energetica Rio das Antas, which runs the plant, implemented an emergency evacuation plan on 1 May. Brazilian steelmaker Gerdau that it suspended its operations in two mills at the state until it can ensure "people's protection and safety." The company did not disclose the produced volume of steel at those two mills. Logistics company Rumo partially interrupted operations and said that "damages to assets are still being properly measured". Petrochemical giant Braskem shut down its facilities at the Triunfo petrochemical complex as a preventive measure because of "extreme weather events" in the state, it said on 3 May. The company added there was no expected date to resume activities there. Braskem operates eight industrial units in Rio Grande do Sul that make 5mn metric tonnes/yr of basic petrochemicals, polyethylene and polypropylene, according to its website. By Carolina Pulice Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Nova Chemicals preps for potential Canadian rail strike
Nova Chemicals preps for potential Canadian rail strike
Houston, 18 April (Argus) — Nova Chemicals is taking certain precautions such as making early shipments and forward placement of inventory at US storage locations to mitigate against potential polyethylene (PE) supply disruptions caused by a possible Canadian rail strike that could take place as early as 22 May, the company said in a letter to customers. The Canadian National (CN) and Canadian Pacific Kansas City (CPKC) railroads are (currently negotiating contracts)[https://direct.argusmedia.com/newsandanalysis/article/2553764] with the Teamsters Canada Rail Conference, which represents 9,300 employees across both railroads. The earliest a strike could begin is 12:01am ET on 22 May, but any work stoppage at either railroad could cause widespread disruption to rail traffic across Canada. "NOVA Chemicals utilizes CN and CPKC to serve our manufacturing facilities and delivery polyethylene products and co-products to our customers," the company said in a 15 April letter to customers. "A labor strike within the Canadian railroad industry will result in disruptions and delays, impacting the timely delivery of these products." Where practical, the company said it will ship product early prior to any strike, it said in the letter. It will also attempt to place some inventory at US off-site storage locations before the strike takes place, which will allow it to continue to serve US customers during a strike. Additionally, Nova said it is maintaining a direct line of communication with rail officials, and creating contingency plans for raw materials supply. "Despite our best efforts to mitigate these challenges, there may be instances where shipments are delayed or rerouted due to the strike action," the letter says. If a strike takes place, market participants said it would likely last around 3-4 days, but could cause delays to shipments for up to two weeks. However, the overall US/Canada market is well-supplied, so any shipment delays should not create significant tightness in the market, sources said. Union employees at each railroad will vote electronically from 8 April to 1 May on whether to approve a strike. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US spot PGP falls to lowest since November
US spot PGP falls to lowest since November
Houston, 17 April (Argus) — US prompt-month spot polymer-grade propylene (PGP) fell this week to the lowest in nearly five months on weak domestic demand for some smaller volume propylene derivatives, especially acrylonitrile (ACN) and propylene oxide (PO). US PGP traded on Tuesday at 41.5¢/lb, down by 30pc since 5 March and the lowest price since late November. US PGP's pricing in recent years has mostly been driven by supply changes, but market participants believe that some of the price drop since early March stems from weakness in PGP's smaller demand sources like ACN and PO. ACN consumes about 7pc of US propylene, declining from 10pc over the last six years, and PO accounts for around 11pc of US demand for propylene. US demand remains weak for polypropylene (PP), which accounts for about half of domestic PGP demand, but has increased over the last few weeks, with operating rates improving. Rising PGP demand has been offset by falling production of smaller volume derivatives like ACN and PO, largely driven by elevated PGP spot prices in the first quarter that narrowed margins. Cornerstone's 257,000 metric tonne (t)/yr ACN unit in Waggaman, Louisiana, has been down on an extended turnaround, according to market sources. That unit comprises 16pc of the US ACN capacity, according to Argus data. Another producer told Argus that ACN is being produced "to order," as demand has not been steady, saying "these are tough times" for ACN. A PO producer in Texas began a planned turnaround this month that is expected to last until mid-May, reducing demand for US propylene. The turnaround has shut 20pc of US PO capacity, according to Argus data. By Michael Camarda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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