Archive | Fibre Intermediates 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

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 PTA Imports Halve As Exports Surge

By John Richardson

CHINA’S purified terepthalic acid (PTA) imports fell to just 751,000 tonnes in the first half of this year compared with 1.56m tonnes in H1 2013. Meanwhile, exports increased to 232,000 tonnes from  only 27,000 tonnes.

The sad …

Continue Reading

China MEG: Understanding A Doubling Of Inventories

By John Richardson

THE chart above shows how mono-ethylene glycol (MEG) coastal inventory levels in China have more than doubled since 2010. One explanation might be that the substantial increase in MEG demand since 2010 means that inventories, as a …

Continue Reading

China Polyester: Failure To Ask The Right Questions

By John Richardson

HERE is a historical account of what has gone wrong with China’s polyester industry:…

Apparel and non-apparel manufacturers were first encouraged to back-integrate to polyester fibres production and then to purified terephthalic (PTA) as the central government

Continue Reading

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 …

Continue Reading

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, …

Continue Reading

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

Continue Reading

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.…

Continue Reading

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 …

Continue Reading