Newsroom

SABIC’s recent divestments in Europe and the Americas were not unexpected, given the high cost of production in Europe and persistent global oversupply. What is encouraging, however, is that these assets are being divested rather than permanently shut down, preserving optionality for employees, customers, and regional supply chains.

The European Parliament’s decision to put both the EU–US and EU–Mercosur trade deals on ice marks another moment of strategic uncertainty for global trade with real consequences for chemicals, plastics, and energy-intensive industries.

Central & Eastern Europe (CEE) plays a critical role in Europe’s polymer value chain. The region remains structurally import-dependent, highly sensitive to geopolitics and logistics, and increasingly exposed to sanctions risk and supply-security concerns. Against this backdrop, the planned acquisition of Naftna Industrija Srbije (NIS) by MOL Group carries implications that go well beyond fuels and refining.

Simone de Faria highlights that Venezuela’s potential political transition could open opportunities across the Americas’ petrochemical sector, but new complexes there are unlikely soon due to devastated infrastructure and the long road to legal and institutional stability.

The Mercosur–EU free trade agreement, signed on January 19, 2026, is expected to significantly boost Brazilian footwear and plastics exports, increasing demand for locally produced EVA and other polymers while promoting sustainability standards. In the EVA market, Central/South American imports declined sharply in 2025, while exports grew modestly, mainly to China. LEVA and MEVA remain the dominant EVA grades used across foams, films, adhesives, and molding applications.

PE producers are pushing January price increases of up to 5.0 cpp, but early-month activity is limited as buyers resist hikes amid weak demand.