Archive | Company Strategy RSS feed for this section

China’s Polyester Crisis: The Global Implications

By John Richardson

EVERYWHERE you turn it looks bad in China, especially in the polyester value chain.

“So has it always been in polyester. Because of its ownership structure, capacities up and down the chain are often out of sync,” …

Continue Reading

China Exceeds US 20th Century Cement Output In Just Two Years

By John Richardson

CHINA produced more cement in 2011 and 2012 than the US produced in the whole of the 20th century. Yes, that’s right, China produced more cement in just two years than the States produced in 100 years.…

Continue Reading

China Polyethylene: Fitting 11% Into 6%

By John Richardson

ELEVEN per cent apparent demand growth in polyethylene (PE) in China will not go into estimates of real demand growth at no more than 6%.

This is our concern based on the latest set of data on …

Continue Reading

Finding A Home For US Polyethylene Expansions

By John Richardson

EVEN if you take a benign view of the future of the US economy (which, separately, we think is the wrong view), the planned increases in US polyethylene (PE) capacity still raise this very important question: Where …

Continue Reading

China: “The Dog Ate My Homework” Won’t Do

By John Richardson

TWO Chinese plastic processing companies are in financial difficulties because they have used raw-material purchases for speculation, a polyolefins industry source told the blog.

“The companies are in trouble because they resold their inventories in order to …

Continue Reading

China, The US Stock Market And Overvaluation

By John Richardson

THE US economist, Robert Shiller, has a very good track record in identifying  when bubbles have become inflated. For example, as early as 2003, he foresaw the dangers of the US housing bubble.

And so the blog …

Continue Reading

China And Starting From Entirely The Wrong Position

By John Richardson

THE majority of  people analysing data on China’s economy are still getting it wrong.

They think that the worst the numbers get, the more likely it is that the government will panic. Predictions are widespread, therefore, of  …

Continue Reading

As China Stays The Course, Plan For Collateral Damage

By John Richardson

LAST week’s $5-15/tonne decline in polyethylene (PE) pricing in China (see the above chart) is partly the result of negative sentiment created by the start-up of new domestic capacities.

In July, Shaanxi Yanchang China Coal Yulin Energy …

Continue Reading

Asia Chemicals Face Another Disorderly Destocking Process

By John Richardson

ASIAN chemicals markets have gone through another sequence of inventory building that will once again be followed by a period of disorderly de-stocking, warns Paul Satchell, UK-based chemicals analyst with investment and investor services firm, Cannacord Genuity.…

Continue Reading

China’s July Lending Underlines The Real Direction

By John Richardson

WHEN there was a big year-on-year surge in China’s lending in June some commentators took this is an indication that Beijing was going soft on its economic reform programme.

Instead it seemed more likely at that time …

Continue Reading