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As China Stays The Course, Plan For Collateral Damage

By John Richardson

LAST week’s $5-15/tonne decline in polyethylene (PE) pricing in China (see the above chart) is partly the result of negative sentiment created by the start-up of new domestic capacities.

In July, Shaanxi Yanchang China Coal Yulin Energy …

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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.…

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China Polyethylene: Unreal Growth Numbers

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 …

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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 …

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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 …

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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 …

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What A “Low Growth World” Really Looks Like

By John Richardson

ONLY six new  US crackers would be built over the next five years because of rising construction and labour costs, said Dow Chemical’s CEO, Andrew Liveris, in an earnings conference call last week. This would be out …

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China Commodities: Fool’s Gold

By John Richardson

GILLIAN Tett’s splendid book about the root causes of the global financial crisis, Fool’s Gold, talks about “silo thinking”. Regulators, politicians and supposed financial experts had deep expert knowledge in their chosen fields, but lacked the ability …

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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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