LyondellBasell said 2026 sustaining capex is expected to decrease by about $100 million following the divestiture of four European assets.
China and regional market effects
LyondellBasell said the Middle East conflict cut Chinese polyolefin inventories by about 30% from pre-conflict levels, while operating rates remain in the mid-70% range.
The company said Chinese producers cut imports and raised exports to Southeast Asia despite lower operating rates, citing higher prices and regional shortages.
Conflict disruption to petrochemical operations
LyondellBasell estimates 6 million tons of polyethylene capacity, or 20%–25% of Middle East supply, was damaged and will not restart before 2027, according to the conference call.
The company’s CEO said the Middle East conflict has severely disrupted global petrochemical operations, feedstock supply, logistics and trade flows.
LyondellBasell said conflict-driven price volatility and higher Asian freight rates closed arbitrage, boosting U.S. and European petrochemical material demand.
LYB•
