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China’s “Whack-A-Mole” To Accelerate

By John Richardson

Mono-ethylene glycol (MEG) is the latest petrochemicals product to be caught up in real estate-linked collateral trading, an industry observer recently told the blog.

“To some extent, MEG has been bought not for real demand, but instead …

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China: GDP And Forgetting What You Already Know

By John Richardson

THE blog has a terrible confession to make: We sometimes get it very badly wrong. How’s that for modesty?

A couple of months ago we got it very badly wrong when we kept waffling on and on, …

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China Adjusts To “Zero Inflation” In Textiles

By John Richardson

CHINA’S polyester chain business is undergoing a painful adjustment period, as the slide above indicates, as a result of:…

Expectations that cotton prices will drop to a five-year low in 2014-2015. This is largely the result of

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China: When Sentiment Tells Us Something Important

By John Richardson

THE blog once asked a seasoned petrochemicals industry consultant what the price of polypropylene (PP) was.

“It depends on whether the Hong Kong traders are in a good or a bad mood this morning,” was his reply.…

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China’s Petchem Markets Contradict Latest PMI

By John Richardson

IF you study China’s petrochemicals markets on a regular basis they tell you something very important: That despite persistent efforts to tighten-up supply across several sectors in order to entice end-users into stock building, “hand-to-mouth” purchasing remains …

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China Iron Ore Stocks Can Build 1,200 Empire State Buildings

By John Richardson

CHINA’S commodity imports boom was, of course, mainly down to the rise its middle class as hundreds of millions more of its citizens became rich enough to buy a refrigerator, a TV and a car for the …

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China Yuan-Backed Export Flood Begins

By John Richardson

CHINA exported 45,000 tonnes of purified terephthalic acid (PTA), which underlines how a weaker Yuan is being used as a way of compensating for weaker local demand up and down the polyester chain. The same applies to …

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China’s “Irrelevant” Target

By John Richardson

WHEN is a target for GDP growth almost irrelevant? Perhaps this year in China, when if history is any guide, even if China genuinely hits its 7.5% growth target, chemicals demand growth could considerably undershoot this number.…

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What Yuan Depreciation Means

By John Richardson

THE truth is that nobody has ever entirely understood the nature of China’s chemicals and polymers demand.

During the good times, at the height of China’s credit Ponzi scheme, if you were a sales manager, why ask …

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China MEG Market Points To Risks Ahead

By John Richardson

SOMETHING very disturbing is going on in China’s mono-ethylene glycol markets (MEG), which, we, think, reflects the following:…

Failure to read the economic tea leaves. A sharp contraction in credit growth threatens to leave 2014 GDP growth

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