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Eight Steps To Realising This Will Be Worse Than Lehman Bros

By John Richardson

WE are going through a process of realisation at the moment. It is not a linear process   – i.e. not all people will be at the same stage.

Equally, chemicals and other company executives will move backwards …

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Broad Commodities Sell-Off Threatens Petrochemicals

By John Richardson

IRON ore prices are now down by nearly 40% so far this year to a level not seen since September 2009.

As for crude oil, Brent has now dipped below $100 per barrel, for the first time …

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Another Hammer Blow For China Polyethylene

By John Richardson

CHINA is bringing down the hammer time and time again as it continues to play the whack-a-mole game.

The latest blow to one or several of the unlucky moles involves the People’s Bank of China’s (PBOC) decision …

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Walking Away From Reality At Tianjin World Economic Forum

By John Richardson

SOME of the world’s global business leaders don’t seem to get it.

This is the only conclusion we can reach from their reported reaction to Li Keqiang’s opening speech at the World Economic Forum in Tianjin, China, …

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Iron Ore and Petrochemicals Share The Same Delusions

By John Richardson

BACK in January we wrote:  “As China’s investment growth model is unwound – for economic as well as social reasons –  iron ore prices [will] decline significantly, leading to the failure of the smaller mining companies and …

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China’s Real Growth Could Be Weakest Since 1995

By John Richardson

WE all should know that China’s published GDP figures are meaningless as, of course, China’s premier Li Keqiang has told us so.

But the trouble is that so many analysts continue to talk about another burst of …

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China Transformation Webinar Tomorrow

By John Richardson

EVERYWHERE you look is the same,  according to the Asia ICIS pricing reports for the week ending 5 September. For example:…

Purified terephthalic acid operating rates were just 52-53% at the end of last week, down from

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Asia Chemicals Will Need To Cut Operating Rates

By John Richardson

THE above chart, from Paul Satchell’s latest Volume Proxy*, indicates that the downturn in Asian chemicals markets has become more entrenched.

“The continued decline in the Asia line lends further support to our earlier assertion that the …

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Poorandageing

China Deals With Demographics In The Right Way

CHINA’S approach to its challenging demographics are in complete contrast to the Russian approach, which we outlined yesterday.

In the case of China, its strategy involves:…

Providing manufacturers with strong incentives to relocate from high labour cost coastal provinces to

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China Will Not Shut Down. It Will Instead Run Harder.

By John Richardson

EVERY $10 decline in the iron ore price knocks more than $2bn off the annual revenues of Vale,  Rio Tinto and BHP Billion and around $250m from those of Anglo American.

We can see a similar dynamic …

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