Tag Archives | petrochemicals

Bio-based Local Ethylene Plants A Good Alternative

By John Richardson

THE proven approach for success in petrochemicals is, of course, to find cheap feedstocks somewhere and build a world-scale cracker complex.

That “somewhere” doesn’t necessarily have to be close to the final customers in emerging markets. For …

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China PE Market Strength Questioned

Dear blog reader – a  technical error, beyond our control, means that we are unable to upload the tables and graphs for today’s post. Watch out next week, as, when the problem has been solved, we will add the missing …

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Global Petchem Markets Turn Bearish

By John Richardson

EXCESSIVE inventory building down all the major petrochemical value chains is a global rather than just a Chinese problem, according to Paul Satchell – the UK-based chemicals analyst with global investment bank  Canaccord Genuity in his latest …

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China PE Imports: A Long-Term Outlook

 

By John Richardson

THE chart below is worth revisiting, and pondering again, as we attempt to assess the future of polyethylene (PE) exports to China.

In the case of the Middle East, as the chart shows, it has been …

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Irrationality And Staying Solvency

By John Richardson

JOHN Maynard Keynes, the famous economist and speculator ,  once said “the market can stay irrational longer than you can stay solvent.”

In other words, if you are a trader you can sit around for ages waiting …

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New Consensus Builds On Ethylene Supply Gap

By John Richardson

THERE seems to be a new consensus emerging over an ethylene capacity addition shortage between 2013 and 2017.

Many of the projects that are supposed to come on-stream during that period will either be delayed, or perhaps …

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Adjusting Inventories To Lower China Growth

By John Richardson

EXCESSIVE inventory building across a range of commodities in China, including  petrochemicals, continues to worry the blog.

One reason, as we discussed yesterday, might be that traders are in the midst of a liquidity squeeze as a …

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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 …

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China Export And Import Data May Obscure The Real Picture

By John Richardson

CONFUSED? Perhaps, as was definitely the case last Friday, you shouldn’t be.

The thrilled reaction of financial markets to the release of China’s July export and import data needs to be put into the context of it …

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The Great Polyethylene Mystery Hunt Continues

By John Richardson

REPORTS of soaring apparent polyethylene (PE) demand (imports plus domestic production) in China continue as the search also persists for an explanation, given the country’s weak macro-economic environment.

Last week we wrote of  a 13% increase in …

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