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Asian Petchems Profits Could Test Historic Lows In 2018

By John Richardson

THE ASIAN steam cracker business has struggled to pass on higher oil prices as the above chart further underlines. As you can see, high-density polyethylene (LLDPE) injection grade spreads including selected co-products have slipped over the last …

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Asian Naphtha Cracker Spreads To Fall By 50% In 2018

By John Richardson

ASIAN naphtha cracker operators will see a 50% decline in average spreads, or differentials, between their raw-material costs and finished product prices in 2018 compared with last year, according to my forecasts in the above chart. This …

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Petchems Pricing Power, Operating Rates Tell Real Economic Story

By John Richardson

PETROCHEMICALS and polymers pricing power – how easily petrochemicals producers can pass-on higher oil prices to their customers – is a great measure of the strength of the overall global economy.

The reason is that petrochemicals are …

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Asian Naphtha-PE Spreads Collapse By 80% As 2018 Challenges Build

By John Richardson

ASIAN naphtha-to-polyethylene (PE) spreads collapsed by 80% in the first week of January compared with December last year because of the failure to pass on the rise in naphtha feedstock costs resulting from higher oil prices.

In …

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Peak Oil Demand Opportunities For Petchems Are Being Over-Hyped

By John Richardson

THERE is a lot of excitement about new petrochemicals feedstock opportunities resulting from the approaching end of the road for the internal combustion engine, the rise of the electricity battery car and the related arrival of Peak …

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China Growth Slows On Collapse In Shadow Bank Financing

By John Richardson

YOU should print-off the above chart and stick it on your chemicals company boardroom wall. From fellow blogger Paul Hodges, it shows the collapse in credit issued via China’s shadow banking system.

It is the shadow banking …

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New Petchems Business Model Based On Trading Blocs

By John Richardson

THE above chart should give every analyst who thinks low feedstock costs are by themselves guarantee of success in petrochemicals pause for thought:

US net polyethylene (PE) exports in 2016 were 5,000 tonnes lower than in 2015,…

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China: When Fake GDP Numbers Didn’t Really Matter

 

Do you need to be part of this discussion? Then join me for a free Webinar on 30 September.

WE all like to be proved right, of course, as it gives us that warm feeling of satisfaction inside – …

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Peak Oil? Yes, Absolutely – Peak Oil Demand

By John Richardson

YOU should never bet against the capability of oil investors to turn the world completely upside down.

A great example occurred on Wednesday of last week, as Arthur Berman argues in this excellent Oilprice.com article.

He points …

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So Much For The Bonus From Cheaper Oil

By John Richardson

THE big turning point in Asian petrochemicals markets can be traced back to around the end of July for three big reasons:

• It was broadly accepted from then onwards that China wasn’t going to change its …

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