By John Richardson THERE is a very common view out there that the ethylene cycle will tighten from next year until around 2019, when the big flood of new US capacity is expected to hit the market. This is supported by the thinking that: The global economy will get stronger, rather than weaker, next year. […]
Asian Chemical Connections
Formosa Confirms US Cracker Plans
By Malini Hariharan One more US cracker and propane dehydrogenation (PDH) project has been confirmed. After months of speculation Formosa Plastics has announced that plans to build a 800,000 tonnes/year ethane cracker, a 600,000 tonnes/year PDH plant and a 300,000 tonnes/year low density polyethylene (LDPE) plant at Point Comfort, Texas. The $1.7bn investment is due […]
Forty Five Minutes On China
By John Richardson CHINA’S GDP (gross domestic product) growth could fall to only 6.6 percent this year compared with 9.2 percent in 2011, warned Patrick Chovanec, an economist at the Tsinghua University’s School of Economics and Management in Beijing in this Reuters article. Even this very-low rate of growth for China will only be achieved […]
A quick recovery for butadiene
By Malini Hariharan Asian butadiene prices are once again on their way up, rising over 20% in the last two weeks. Prices last week were at $1,900/tonne cfr Northeast Asia, up from a low of $1,500-1,600/tonne cfr Northeast Asia in the week ending 11 November, reports ICIS news. And offers have crossed the $2,000 mark […]
Restocking lifts polyolefins prices
By Malini Hariharan Polyolefins prices in the key China markets inched up last week thanks to an uptick in buying activity. Prices of high-density polyethylene (HDPE) blow moulding and film grades moved up $20/tonne while linear-low density PE prices were up $30/tonne, reports ICIS pricing. Polypropylene prices were also up $10-20/tonne However, opinion continues to […]
Yet another week of price corrections
By Malini Hariharan Asian petrochemical markets continue to face downward pressure on concerns about the health of the global economy. Market sentiment for most products remains poor with buyers in no rush to resume purchases. Polyolefin markets closed last week on a weak note. Prices of low-density polyethylene (LDPE) and polypropylene (PP) dropped $10-40/tonne last […]
Korea escapes from China slowdown
By Malini Hariharan The blog has been scanning equity analyst reports of South Korean companies and has noticed that earnings expectations for the year are being revised upwards despite market uncertainties. Companies such as S-Oil are expected to benefit from a recovery in refining and paraxylene (PX) margins. Woori Investment & Securities has raised its […]
US shale gas and petchems
By Malini Hariharan The blog would like to share an interesting analysis in the latest issue of ICIS Chemical Business on the impact of US shale gas on petrochemical producers in the region. Profitability has of course improved as seen in the results posted by majors such as LyondellBasell. Shale gas production in the US […]
No escaping the squeeze
By Malini Hariharan With naphtha crossing $1000/tonne yesterday Asian petrochemical producers reliant on this feedstock remain caught in a tight spot. Costs are continuously rising while market direction for key derivatives is uncertain. Ethylene and propylene prices are holding firm at around $1,350/tonne CFR Northeast Asia and $1,500/tonne CFR Northeast Asia respectively, supported by a […]
Accident spurs US ethylene; Asia holds steady
By Malini Hariharan Spot ethylene prices in the US have moved up following a fire at Enterprise Products natural gas liquids (NGL) complex at Mont Belvieu, Texas, on 8th February. The complex is said to be among the world’s largest underground storage centres for NGLs. Pic source: ICIS Spot ethylene offers rose to 49cents/lb, up […]
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