By John Richardson One of the explanations we have heard for the 20% increase in China’s polyethylene (PE) imports in H1 2014 over the same period last year (see the chart below) is, as we discussed last week, a surge in demand for pipe grade high-density polyethylene (HDPE). But, as we pointed out in the […]
Asian Chemical Connections
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 thing is that whilst, of course, the data was impossible to predict with such a […]
China: The Hammer Falls On BOPP
By John Richardson Biaxially oriented polypropylene (BOPP) films capacity in China has risen to three times the country’s annual demand, said a source with a global polyolefins producer. Watch this space for the actual data as this is still work in progress. But suffice to say here, the initial numbers we have been given would […]
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 proportion of this total demand, haven’t increased that dramatically. Real consumption of all the three […]
China Polyethylene ‘Real” H1 Demand Growth At 4-5%
By John Richardson CHINA’s polyethylene (PE) real demand growth – i.e. resin that has actually gone into the manufacture of finished goods – rose by 4-5% in the first half of 2014 over the same period last year, said sources with several overseas producers. And yet: Imports were up by 20% in H1 2014 over […]
Demographics And “The Internet Of Things”
A DECADE from now, you might wake up in the morning and: Step on scales that quickly shoot data to a service provider that helps you decide how long and hard to exercise on the treadmill that day. Brush your teeth with a toothbrush that sends data to a local dentist. This will give early […]
The Philippines: What A Fantastic Opportunity
By John Richardson The Philippines is in a demographic sweet spot, according to the CIA factbook. In 2013, for instance, 34% of the population was aged between 0-14 and 19.1 was aged between 15-24. This is potentially fantastic news if the Philippines can do something about its dreadful infrastructure. As the New York Times points out in […]
China’s Polyethylene Data: Credible Answers Required
By John Richardson THE extraordinary data on China’s polyethylene (PE) market will not go away. We need credible answers. To begin with: Imports were up by 20% in H1 2014 compared with the same period last year, according to Global Trade Information Services. They were up by 33% in the first half of 2014 over […]
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 sought to develop the economy through import substitution. This might have been fine without decision […]
The Failure Of Abenomics Should Be No Surprise
By John Richardson The steepest decline in Japanese industrial production since March 2011 has shocked some commentators. We cannot understand why. “Industrial output dropped 3.3% in June from May, the trade ministry said today in Tokyo, more than twice the median forecast for a 1.2% contraction in a Bloomberg News survey of 31 economists. The […]
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