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Asian Chemical Connections

EU Summit Solves Nothing

  European LDPE spot prices at their lowest level since January 2010    By John Richardson THE EU Summit results might have bought a little more time, but as John Authers points out in this article in the Financial Times, “the result was the latest politically driven bounce for risk markets (including crude-oil prices and […]

Europe’s “Recovery” Falters

  By John Richardson THE mood in European ethylene and polyethylene (PE) markets has changed over the last two weeks, according to my ICIS pricing colleagues, Nel Weddle and Linda Naylor. “A drop in crude oil and naphtha values saw speculation over a decrease for the May (ethylene) contract build this week,” wrote Nel last Friday. […]

Confidence And Petrochemicals

By John Richardson CONFIDENCE is a strange thing. It can be derived from solid reasons for optimism over the future or from temporary factors that can rapidly disappear. And what is the value of publicly-expressed confidence? Is it often politically motivated rather than being based on the genuine belief that the future holds tremendous promise? […]

Europe Markets Lure Asian Polyolefins

By John Richardson EXACTLY the same scenario is playing out in European polyolefin markets, as in Latin America and possibly the US, my ICIS colleague Linda Naylor reported last Friday. High polyethylene (PE) and polypropylene (PP) prices in Europe have led to increased offers for re-exported material from China, according to Linda – our European […]

Five Essentials For Planners

By John Richardson POLYETHYLENE (PE) industry planners need to factor in the following as they prepare for 2012: 1.) Oil prices are causing demand destruction in the global economy. They could go higher due to the Iranian nuclear crisis. In real dollar terms, as fellow blogger Paul Hodges has written, crude prices were the highest […]

Difficult Year For Naphth-based PE

By John Richardson THE first quarter of the 2012, and very probably the rest of the year, look likely to be very difficult for Asia’s naphtha-based polyethylene (PE) producers as a result of more competition from the Middle East in the vital China market. The other big negative factor looks likely to be Chinese demand […]

Investors Predict Strong Petchems Rebound

By John Richardson POLYETHYLENE (PE) inventory levels are thought to be so low at the converter end of the business in China that a case is being made for a strong recovery in demand and pricing post-Lunar New Year. A further factor behind the anticipated rebound are forecasts of further credit easing by the Chinese […]

Restocking Price Recoveries Will Be Deceptive

By John Richardson WE will see, as we did in the second half of last year, chemical price recoveries on restocking as inventories are at very-low levels down many of the value chains. It will only take slight improvements in confidence for markets to suddenly bounce-back. Further monetary easing China is likely to buoy confidence post-Chinese […]

Wile E Coyote And China

By John Richardson THE blog, a bit like Wile E Coyote who always fails to catch Road Runner, has been amazed in recent weeks at certain people in the chemicals industry who, in public at least, fail to grasp the complexities confronting China’s economy in 2012. We wish that our experience would, at least for some […]

The Great Opportunities Ahead

  The blog is taking a break for the festive season (we will back on Thursday next week before, of course, closing-down again over the New Year period).  We would like to wish all of our readers a very happy holiday season and successful 2012.  Before we take our leave, here are a few thoughts […]

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