Archive | Economics RSS feed for this section

China’s Lending Up Just 5% As Govt Refuses To Blink

By John Richardson

CHINA’S official bank lending was up just 5% in January-August of this year compared with the same period in 2013, according to some more value-added data crunching by our fellow blogger, Paul Hodges.

It is  absolutely critical …

Continue Reading

China Excess Phenol Capacity A New Strategic Tool

By John Richardson

STANDARD Western cost-per-tonne analysis has never really been applied in China’s petrochemicals industry – and it never will be applied.

In the past, we have seen how petrochemicals plants have often been run at operating rates of …

Continue Reading

China Doing “More With Less” In Steel And Plastics

By John Richardson

CHINA is still a poor country relative to the West and here is why:…

Average per capita annual urban incomes in 2013 were just Rmb29547 ($4769), according to official government statistics.
Average per capita rural incomes were

Continue Reading

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 …

Continue Reading

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, …

Continue Reading

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 …

Continue Reading

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

Continue Reading

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 …

Continue Reading
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

Continue Reading

Russian Sanctions Too Little, Too Late

By John Richardson

“A common orthodoxy in Western thought – the notion of  a globalising world in which greater prosperity was ultimately analogous to stability – has  been again thrown into contention,” wrote the Financial Times, in an article worth …

Continue Reading