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China’s Polyolefins Recovery On Shaky Ground

By John Richardson

CHINA’S polyolefins markets were in a muddle last week as a result of resilient offer prices for imported material versus a fall in pricing for domestic cargoes.

Domestic polyethylene (PE) prices were largely softer, but local distributors …

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China Jan-Feb Deflation Deepens, Growth Collapses

By John Richardson

CHINA’S economy is now showing signs of extreme weakness, according official year-on-year data for January-February:…

Fixed asset investment, the biggest driver of growth in China’s economy, rose by 13.9% – the weakest rate of expansion since 2001.

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China: Affordability, Affordability And Affordability

By John Richardson

THE charts below, provided by fellow blogger Paul Hodges, are of great value for any chemicals company looking beyond the current cycle of deflation and debt in China. If you want to be a winner in the …

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Recent History Of Oil Suggests Production Will Stay High

By John Richardson

THERE is a much-broader acceptance today of the recent history of oil markets, which in summary was as follows:…

Oil and other commodities became a great way to make money for speculators at the height of the

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China’s Li Keqiang Pulls No Punches On The Challenges Ahead

By John Richardson

Li Keqiang was short on detail during a major speech last week, said some analysts. This was taken as a sign that Beijing has become nervous about the pace of the economic slowdown, a theory supported by …

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China’s Polyolefins Price Recovery: The Role Of Crude

By John Richardson

THE  above chart is a useful reminder of the role that crude prices has played in influencing the pricing of polyethylene (PE) and polypropylene (PP) in Asia since January of last year (I have picked just two …

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The Long Term Average Price Of Oil Is $30 A Barrel

By John Richardson

OIL and petrochemicals markets have behaved from mid-February until today as if the world is about to return to the way it was in the first half of last year.

Here is the thinking behind this behaviour:…

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How China Can Fix Its Housing Crisis

By John Richardson

THE above chart shows the affordability of real estate in China’s Tier 1 cities (its biggest cities) as of June 2013 compared with many of the world’s other “rich cities”.

Why the speech marks around “rich cities”? …

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China’s Real Estate Crisis Was Entirely Predictable

By John Richardson

AN investment bubble can only remain stable if you pump ever-more air into the bubble. If you don’t continue to do this, then the bubble is in severe danger of bursting.

The warning signs started flashing red …

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Be Very Careful Of the $60-70 Oil “New Normal”

By John Richardson

THERE is an argument being made that the recent stability in oil prices will continue as crude enters a “New Normal” of $60-70 a barrel.

This type of thinking seems to have had an effect on petrochemicals …

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