Tag Archives | iron ore prices

Tackling China’s Latest Steel Bubble: Implications For Petrochemicals

Note: A technical fault meant I was unable to update the blog on Wednesday and Friday last week. Business as usual returns this week.

By John Richardson

THE stop, start nature of economic reforms in China, which is the result …

Continue Reading

Don’t Bet On A Post-Lunar New Year Rebound

 

By John Richardson

THERE is a very risky theory that I have picked up in my conversations with Asian polyolefin industry players over the past few days:

Strong underlying demand growth in China, low stock levels held by the …

Continue Reading

Iron Ore and Petrochemicals Share The Same Delusions

By John Richardson

BACK in January we wrote:  “As China’s investment growth model is unwound – for economic as well as social reasons –  iron ore prices [will] decline significantly, leading to the failure of the smaller mining companies and …

Continue Reading

Asia Chemicals Will Need To Cut Operating Rates

By John Richardson

THE above chart, from Paul Satchell’s latest Volume Proxy*, indicates that the downturn in Asian chemicals markets has become more entrenched.

“The continued decline in the Asia line lends further support to our earlier assertion that the …

Continue Reading

China Will Not Shut Down. It Will Instead Run Harder.

By John Richardson

EVERY $10 decline in the iron ore price knocks more than $2bn off the annual revenues of Vale,  Rio Tinto and BHP Billion and around $250m from those of Anglo American.

We can see a similar dynamic …

Continue Reading

China Commodities Rally About Protecting Existing Debt

By John Richardson

OVER the last few days we have focused on the increased risk-on trade in commodities, including petrochemicals.

But maybe the rallies we have seen  in products such as fibre intermediates and polyethylene (PE)  are mainly about traders …

Continue Reading
IPEXFeb11.png

China Credit, Commodities Bubble

By John Richardson

China announced last week that its state-owned banks had lent Rmb1.07 trillion ($172m) in January, which was more than double the amount in December.

Financial markets have taken as evidence that the economic recovery has gained momentum.…

Continue Reading