China accounted for 33% of global growth in the seven major synthetic resins between 1990 and 2001. But this jumped to 63% in 2002-2021. In distant second place during both these periods was the Asia and Pacific region at 15% and 17% respectively.
Asian Chemical Connections
This is the first significant chemicals downcycle for many years
Every tonne of polymer you decide not to produce because there isn’t a viable market will save vital revenues – especially as feedstock costs will remain very volatile. Every tonne of polymer you do produce because the market works will earn you crucial money at a time of declining overall sales.
Why a new stimulus deal could be critical for US polyethylene demand
By John Richardson GOVERNMENT stimulus is crucial for protecting polyethylene (PE) markets in the West from the worst effects of the pandemic, in my opinion. The developing world is a different story because of the rise of extreme poverty. There are other factors behind the resilience of PE demand the US and the EU such […]
Latest global chemicals production data indicate recession likely very close
By John Richardson ONE OF THE useful things about chemicals industry data is that they are an early indicator of macroeconomic trends because chemicals are of course the raw materials for so many finished goods. If demand for chemicals rises this serves as an early indicator of stronger sales of TVs, smartphones, autos, computers and […]
How Lehman Bros reshaped China and the global PE business
By John Richardson MOST of the analysis on the tenth anniversary of the Global Financial Crisis (GFC) focuses on the effects on Western economies and societies. Economic inequality has risen since 2008 resulting in the rise of populist politics, is a very common theme. But almost entirely overlooked is the huge effect that the GFC […]
Global Economy In 2018: Stimulus Withdrawal Threatens Complacent Outlook
By John Richardson IN TODAY’S world of soar-away stock markets backed up by the notion that the sustained global economic recovery will not be derailed in 2018, there is a need to detail the major risks out there. Today’s post will look at the risks posed by the withdrawal of Western and Chinese central bank […]
Global Debt At Unsustainable Levels As We Wait For Trigger Factor
By John Richardson THE whole point about debt is that it should be sustainable. You should only lend or borrower money if you are entirely convinced that future economic conditions – i.e. future demand – justify your commitments. Nice theory, shame about the practice. If lenders and borrowers badly misjudge future real demand then we […]
China Jan-Feb Deflation Deepens, Growth Collapses
By John Richardson CHINA’S economy is now showing signs of extreme weakness, according official year-on-year data for January-February: Fixed asset investment, the biggest driver of growth in China’s economy, rose by 13.9% – the weakest rate of expansion since 2001. The 6.8% year-over-year growth in industrial production was “the weakest year-over-year reading ever outside the global […]
So Much For The Bonus From Cheaper Oil
By John Richardson THE big turning point in Asian petrochemicals markets can be traced back to around the end of July for three big reasons: • It was broadly accepted from then onwards that China wasn’t going to change its policies. There would be no “blinking” via a big, old-style economic stimulus package. • The […]
Policymakers Have Failed The World
By John Richardson WHEN the economic, social and political history of 2008-2014 ends up being written, there are two groups of people who are going to end up bearing a lot of the blame for the new global financial crisis. It is the people who run the Fed and those who ran China’s government until […]