Relatively minor changes in PP demand growth and operating rate assumptions have big effects on forecasts for China’s trade flows.
Asian Chemical Connections
China PP exports decline but the reason is hardly cause for cheer
In November 2021, the premium for overseas PP injection grade prices over prices in China reached a historic peak of $408/tonne. But in 1-18 November 2022, the premium was $113/tonne. Premiums have fallen in every month since April this year, resulting in a decline in China exports.
A deep dive into HDPE and PP: opportunities and challenges for H2 this year and 2022
By John Richardson Executive summary China’s petrochemicals demand boomed in H2 because of the surge in Chinese exports of finished goods that served lockdown needs in developed economies. As lockdowns ease, most of the air has escaped from what was clearly always a bubble. For example, high-density PE (HDPE) demand is set to be 9% […]
China’s PP production growth could lead to big declines in 2020 imports
By John Richardson PLEASE DON’T say I didn’t warn you. China is rapidly moving towards polypropylene (PP) self-sufficiency. There is every chance that by around 2025 it will end up as a net exporter with self-sufficiency achieved in both homo -and co-polymer grades. Becoming self-reliant in co-polymers would fit with China’s strategic push up the […]
What petrochemical companies must do to adapt to a smaller coronavirus economy
By John Richardson PETROCHEMICAL companies can adapt to the coronavirus New Normal by running their businesses to suit what The Economist describes as the 90% global economy. The lost 10% of economic activity will be the result of social distancing, lost incomes, lost wealth and changes in consumer behaviour, says the magazine. Maybe it will […]
Plastics Rubbish Crisis: How To Pick The Winning Polymer Producers
By John Richardson IT IS FIVE years from now. You are rich because you live in the developed world. It is first thing in the morning. You take your rubbish (or trash as the Americans say) into you backyard and place it in a series of bins where you separate not only recycled from non-recycled […]
China PP Import Decline Challenges Global Markets
By John Richardson THE latest data on China’s polypropylene (PP) imports should set alarm bells ringing in polyolefin company board rooms: China’s PP production was up by 14% in January-April 2016 versus the same four months last year, with imports falling by 20% on the same year-on-year basis. January-April imports in 2016 were at their […]
Saudi Arabia and Oil: A Lesson For Polypropylene
By John Richardson POLYPROPYLENE (PP) producers and their customers, the plastic converters, are on the cusp of a great opportunity. Let’s start with the producers. The potential for low-priced propylene for several years to come will push PP prices down, thus giving PP the chance to gain market share from other polymers such as polystyrene, […]
Constant Search For Feedstock Advantage
By John Richardson AROUND $6bn worth of proposed petrochemical investments in Kazakhstan – the giant central Asian country with abundant oil and gas reserves – once again confirms the three most important factors for success: Feedstock, feedstock and feedstock. “The gas that will supply these projects is sufficiently advantaged to overcome major construction and logistics […]
Formosa’s troubles deepen, markets rally on supply concerns
By Malini Hariharan The latest accident at Formosa Petrochemical Corp’s (FPCC) refinery at Mailiao, Taiwan, on Sunday is adding to the bullish sentiment in markets for key petrochemicals. A fire in the propylene recovery unit has forced the company to close its 540,000 bbls/day refinery and related facilities, including two residual fluid catalytic cracking units […]
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