Impact of China’s Latest Rate Rise – Part 1

Here is the first of two posts that will analyse the implications of China’s decision to raise interest rates for the third time this year 

 

By John Richardson

CHINA’S decision to once again raise interest rates will put further pressure on the …

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Does the industry need more PTA?

By Malini Hariharan

The impending oversupply in purified terephthalic acid (PTA) and likely problems in securing feedstock paraxylene (PX) does not seem to have dampened enthusiasm for new investments,

Around 10m tonnes of PTA capacity is expected to come on …

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European PE, PP Contracts Likely To Fall

By John Richardson

EUROPEAN polyolefin converters seem quite justified in pressurising their suppliers for further price reductions, given weak macro-economic fundamentals and still-excellent profitability at the cracker end of the value chain.

The news from China continues to get worse. China’s …

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Methanol stays strong, but for how long?

By Malini Hariharan

The doom and gloom affecting many segments of the petrochemical industry has yet to reach methanol. Asian spot prices have been stable since January and have hovered in the $340-350/tonne range during the last three months.

Methanol …

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China Auto Market Provides Clear Evidence

By John Richardson

DESTOCKING is obviously not the main driver of the decline in China’s polyolefins market, despite what a dwindling band of optimists are still arguing.

The glaringly transparent reason for the fallacy of the fading belief is a …

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European PE, PP below Euros1,000/tonne

By John Richardson

JOURNALISTS are often accused of exaggeration for the sake a good story, but it is genuinely no exaggeration to say that markets are in free-fall.

Last week we reported on how European polyolefin pricing was on a …

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Clinging On To Vain Hopes

By John Richardson

ANYONE clinging on to the hope that the weakness in the global polyolefin market is merely down to China going through a prolonged period of destocking could face a rude awakening.

China’s polyethylene (PE) demand was down …

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Boom, Gloom and the New Normal – Chapter 2 Published Today

Chapter 2 of Boom, Gloom and the New Normal is published today.

In a completely new and challenging analysis we argue:

• The Western BabyBoomers boosted chemical demand for housing, autos and electronics during their peak consumption years between 1980-2000. …

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PE Market Weakness Spreads To US

By Malini Hariharan

After Europe, the US polyethylene (PE) market has started showing increasing signs of weakness. Spot offers have rapidly fallen putting downward pressure on June contracts that are currently under negotiation. Producers may have no choice but to …

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European Markets Weaken Further

By John Richardson

THE dreadful state of European polyolefin markets became even more evident late last week as prices continued their declines.

Discussions on further reductions in European olefin contract prices were also set to begin today.

High density polyethylene …

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