Tag Archives | EU economy

Central Banks Chase The Inflation Illusion

By John Richardson

IT was Milton Friedman who famously said “inflation is always and everywhere a monetary problem”.

This widely accepted economic wisdom is based on the following premise: Excessive expansion of the money supply is inherently inflationary.

And so …

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Polyolefins At A Tipping Point

By John Richardson

EUROPEAN polyolefin markets are at one of those fascinating tipping points following the recent price recovery.

Ethylene spot prices rebounded late last week with July sales much better than those in June, wrote Nel Weddle, European ICIS pricing …

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Saudi Petchem Production Threatens Recovery

By John Richardson

RISING oil production in Saudi Arabia has resulted in bigger volumes of polyethylene (PE) being delivered into Asia-Pacific markets, a source with a major plastics processor told the blog late last week.

“Saudi Arabia has definitely, in …

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Europe Not Clutching At Straws

By John Richardson

EUROPEAN ethylene and polyethylene (PE) market participants seem a million miles away from buying into the idea that the recovery in Asia is sustainable.

This is a realistic view following last week’s interest rate rise in China, the …

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Living In Hope Rather Than Expectation

By John Richardson

HOPEFUL theories espoused by traders can sometimes sound a little hollow – as was the case with the one doing the rounds in Asian polyolefin markets late last week.

“We think the latest interest rate rise in China …

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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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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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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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