Tag Archives | polyethylene

Asian Petchems Profits Could Test Historic Lows In 2018

By John Richardson

THE ASIAN steam cracker business has struggled to pass on higher oil prices as the above chart further underlines. As you can see, high-density polyethylene (LLDPE) injection grade spreads including selected co-products have slipped over the last …

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Asian Naphtha Cracker Spreads To Fall By 50% In 2018

By John Richardson

ASIAN naphtha cracker operators will see a 50% decline in average spreads, or differentials, between their raw-material costs and finished product prices in 2018 compared with last year, according to my forecasts in the above chart. This …

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China’s Plastic Clean-Up Threatens Polymer Growth Assumptions

Last week saw the release of an EU Plastics Strategy which aims to make packaging plastics 100% recyclable in the EU by 2030. China is also moving in the same direction, as I discuss below – and this doesn’t just …

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Struggling Polyethylene In 2018, Strong Profits Elsewhere

By John Richardson

THERE will perhaps be two headline directions for the global chemicals and polymers industries in 2018:

I believe that the global polyethylene (PE) market has a very good chance of moving from last year’s peak margins to…

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Asian Naphtha-PE Spreads Collapse By 80% As 2018 Challenges Build

By John Richardson

ASIAN naphtha-to-polyethylene (PE) spreads collapsed by 80% in the first week of January compared with December last year because of the failure to pass on the rise in naphtha feedstock costs resulting from higher oil prices.

In …

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US-China Trade Relations In 2018: Prepare For The Worst

By John Richardson

WE GOT away with it in 2017 by luck rather than design, as there is of course very little that petrochemicals and polymers companies can do to prevent a global trade war other than lobbying politicians.

Part …

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2018 Oil and Petchems: Risk Of Mistaking Apparent For Real Demand

By John Richardson

PERHAPS the most important recent single paragraph of analysis, in the huge volume of analysis out there about oil markets, was this from Nick Cunningham in a 24 December article on oilprice.com:

The [global crude] inventory surplus …

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Cheap Oil Raises Naphtha Cracker Over Investment Risk

By John Richardson

THE ABOVE chart shows that from January 2015 up until November of this year, the Asian naphtha cracker industry has been making a great deal of money.

The orange bars are the premiums in percentage terms between …

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Crude Drives Asian Polyethylene Spreads To Three-Year Low As 2018 Risks Build

By John Richardson

IN MARCH 2016 we gave three scenarios for crude-oil prices:

Collapsing Demand where we saw crude falling to $25/bbl on weak global demand that would make it impossible to repay much of the huge debts that had…

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How US Could Be Squeezed Out Of Europe’s Polyethylene Market

By John Richardson

EARLIER this year a commonly held view was that globalisation would slip into reverse gear with the very real prospect of a global trade war.

But this view didn’t take into account China’s One Belt, One Road …

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