Archive | Polyolefins RSS feed for this section

Dalian LLDPE futures explained?

My last blog entry quoted a North American industry source who was concerned over the potential for physical delivery on the Dalian futures exchange to flood the real market and send prices crashing.

In my ignorance of how futures markets …

Continue Reading
Chinacontainerpic.jpg

Futures, Recycling Behind China PE Mystery?

Picture: The China Daily

“I’ve given up trying to read the polyolefin market in China. I just can’t figure out what’s going on,” said a senior source with a major North American producer late last week.

“I keep returning to …

Continue Reading
China%20PE%20Jul09.jpg

China petchem imports soar on false confidence

They always say the best form of flattery is immitation and so thanks to my colleague Paul Hodges for this graph indicating a huge surge in China’s polyethylene imports – courtesy of data from Edwin Pang of Credit Suisse.

I …

Continue Reading
jenga_tower_as_software_planning_metaphor.jpg

Artificial price support about to disappear

Source of picture: gilesbowkett.blogspot.com

The excellent daily energy and shipping report, The Schork Report said today that the bottom had “fallen out of the entire (energy) complex.”

With the Bulls on the defensive, the authors believe that crude could retreat …

Continue Reading
Exports%20Jun09.jpg

Where is the real demand recovery?

Have you ever been away on holiday and have cut yourself off from from work, only to return and find that nothing has changed?

So it seems in polyolefin markets. As this blog has been writing about for several months, …

Continue Reading

Back to the Serious Stuff: Fitch issues China warning

As I’ve been warning on this blog for some time, the explosion of credit in China has created a great deal of paper-bottomed optimism over the recovery.

Fitch, the ratings agency, has just raised its macro-prudential risk indicator ffor China …

Continue Reading
TheGoodLife.jpg

Don’t You Wish You Could Be Yourself?

Picture: The Daily Mail

Ok, I lied – I am having trouble getting back into my petrochemicals bubble and so this post is not about polypropylene. Apologies to all those disappointed C3 H6 molecules out there.

I was sharing lunch …

Continue Reading
MandelsonCartoon.jpg

Does anyone have a clue?

Cartoon: Peter Brookes, The Times

Yes, this blog has gone staggeringly quiet over the last few weeks as I gained a life: I went home to the UK and mixed with some people who had no interest in or desire …

Continue Reading
china-street-market.gif

China borrowing from the future?

It’s easy to get caught up in the excitement over the rebound in the Chinese economy and miss underlying weaknesses which point to some major problems ahead.

To some extent, in a desperate effort to compensate for collapsing export trade, …

Continue Reading

Maybe it’s not as bleak as I’ve made out…

Consensus opinion tends to swing firmly in one direction and then the other.

For example, in the good old days of 2007 you would have been pretty hard-pressed to find many in the chemicals industry who saw anything but a …

Continue Reading