Archive | June, 2012

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China’s Labour Complications

Source: Wang Feng, director of the Brookings-Tsinghua Center for Public Policy in Beijing, from an article published in the China Economic Quarterly.

 

By John Richardson

ONE of the explanations for China’s disappointing petrochemicals demand growth during 2012 is that …

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US Chemicals Slowdown

US PE contract pricesBy John Richardson

THE American Chemistry Council’s Mid-Year Situation and Outlook Report, which was released this week, helps explain the background to the weakness in demand seen in the US polyethylene (PE) market.

What goes for PE …

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China Jan-May PE Demand Declines

By John Richardson

THE chart above, from data provided by Global Trade Information Services, further confirms that all hope of any substantial growth in China’s commodity grade polyethylene (PE) market during 2012 needs to be given up. Companies, and chemicals investors, …

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Chemicals In A Vicious Cycle

 

 

By John Richardson

OIL prices could fall to as low as $35-40 a barrel or might slip no further than $60-70 a barrel, depending on which analyst you belief.

And we know of one global polyolefins company that …

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US Targets China VAT Rebates

 

               Mitt Romney would declare China a currency manipulator

               Source of picture: Wikimeda

    

 

By John Richardson

China’s practice of providing value-added tax (VAT) rebates for importers of raw materials who then re-export finished goods is the …

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China’s Borrowing Slowdown

By John Richardson

IT is the demand for loans that matters in China these days more than their supply, as chemicals markets have been telling us for over a month now.

And now, statistical back-up for our anecdotal evidence, that …

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China Still Destocking

 

By John Richardson

A NEW report from HSBC supports our argument that China’s synthetic resin market has yet to bottom out.

Big structural changes in China’s economy are an additional factor, in our view, to the slowdown in China …

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Northeast Asia PE Weakest Margins

 

Source: ICIS pricing Weekly Asian PE Margin Report

 

By John Richardson

The slide above shows how Northeast Asian naphtha-based polyethylene (PE) producers are struggling as a result of the weak China market (dark blue bars).

And it confirms …

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US Polyethylene Targets China

 

By John Richardson

SIGNIFICANT volumes of US polyethylene (PE) are heading to China as the States attempts to compensate for weaker domestic sales, understands the blog.

Despite the fall in US prices, margins remain strong, creating arbitrage opportunities.

US …

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Greek Election Results Change Nothing

By John Richardson

HOW long will the relief rally last in oil and equity markets following the Greek election results?

Sadly, the answer is not long, because difficult discussions lay ahead for the New Democracy party as it tries to …

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