Tag Archives | polyethylene

China Polyethylene Operating Rates To Rise On Govt Policies

By John Richardson

EARLIER this month I reported on how China’s state-owned refineries faced increased competition from their domestic private competitors in 2016 in gasoline, diesel, kerosene and other refined-product markets. This forced Sinopec and PetroChina to reduce their overall …

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Donald Trump And The Polyethylene Industry: What Happens Next

By John Richardson

EVERYTHING started going very well for the global polyethylene (PE) business from the end of 2014/early 2015 if you look at the spreads, or differentials, between naphtha costs and PE pricing.

Spreads are only a blunt instrument …

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Polyethylene Pricing, Profits In 2017: Three Scenarios

By John Richardson

WE are in entirely uncharted territory because the West looks as if it is about to abandon the economic and geopolitical policy consensus that has been in place since the Second World War.

There is, for example, …

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Why The Political Populists Are Being Successful

By John Richardson

HERE are some sobering statistics that mainstream politicians and economic policymakers should take note of:…

The real, inflation-adjusted incomes of two-thirds of households in 25 advanced economies were flat or fell between 2005 and 2014 compared with

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Polyethylene: A World Turned Upside Down

By John Richardson

THE recent history of polyethylene (PE) shows a global competitive landscape very different from that which most people expected two years ago.

Two years ago, we were told that the natural price for oil was $100/bbl because …

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How To Battle For Value In Oversupplied Markets

By John Richardson

FOR the moment all is good, as the chart above illustrates, which details the premiums that C6 metallocene-grade linear-low density (LLDPE) have enjoyed over standard commodity grade C4 LLDPE in the key China market.

The October 2010 …

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Oil Below $30, Trade Barriers Etc: Implications for US Polyethylene

By John Richardson

FOUR years ago it seemed like an absolute “no brainer”.

Just about everyone thought that China’s economy was going to expand at double digit annual rates, virtually forever.

You also had the surge in ethane availability in …

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Asian Polyethylene: Challenge The New Paradigm

By John Richardson

IT would be very interesting to go back to 2000 and compare the strength of positive sentiment towards the future of the Asian polyethylene (PE) industry to the above chart.

The chart shows spreads between naphtha costs, …

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The Risks Ahead For Polyethylene

By John Richardson

TOO many people will look at the chart on the left and think, “Crisis? What crisis?” But glance to the right for what it is like in another petrochemicals value chain. What is happening on the right …

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Polyethylene The “Last Man Standing”. For How Much Longer?

By John Richardson

POLYETHYLENE (PE) remains almost the “last man standing”. Whereas most of the other chemicals and polymers markets in China, including phenol,  polyvinyl chloride and purified terephthalic acid, are mired in almost vanished imports and poor profitability because …

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