News and Insights

South Korea’s petrochemical industry is entering a decisive phase, as government intervention helps stabilize producers under pressure from surging feedstock costs while pushing the sector toward long-delayed restructuring. The latest support package targets core operators such as LG Chem, Lotte Chemical, and Hanwha TotalEnergies, aiming to minimize disruption across the country’s main production hubs.

The effects of the 2026 Iran war are no longer confined to oil markets or political briefings—they are showing up much closer to home. Across Europe and parts of Asia, households are rethinking how they power their homes and what they drive, as rising energy costs and uncertainty reshape everyday decisions.

European EVA and LDPE markets have entered one of their most turbulent phases in years as the US–Israel–Iran conflict disrupts flows through the Strait of Hormuz and sends oil, naphtha and olefin costs sharply higher. In March, this shock translated into a rapid reset of European feedstock and derivative pricing, with ethylene, VAM, EVA and LDPE all repricing within a few weeks.

The majority (93%) of PP Copolymer buyers surveyed by Townsend paid more for their resin in March, and market participants are expecting another significant increase for PP prices in April which will likely include margin increases sought by producers. Most US/Canada PP producers – including Formosa, Heartland, ExxonMobil, LyondellBasell, Braskem, Ineos and TotalEnergies – have announced margin increases of between 4.0 and 10.0 cpp for April, with one producer – Formosa – seeking an additional 5.0 cpp increase for May.

With no determined outlook for the end of the current supply disruptions caused by the conflict in the Middle East, nearly all US PE producers have announced increases for April that range between 20.0 and 30.0 cpp, after a flurry of revisions. Most letters to customers stipulated the April increases are in addition to those already announced or implemented for March. Also, some added that specialty grades would be subject to increases of different amounts.

The country will function as a testing ground where different approaches to addressing plastic waste can be implemented and evaluated. Insights gained from these efforts are expected to inform broader international strategies, potentially allowing successful practices to be adapted and applied in other regions.