Tag Archives | US economy

China’s Polyethylene Market: Three New Scenarios For 2018-2025

By John Richardson

THE above slide underlines the growing complexity surrounding China’s economy, politics, society,  environmental policies and trading relationship with the US. I’ve placed this complexity in the context of the implications for the polyethylene (PE) industry. The above …

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Petrochemicals Destocking Phase Likely As Crude Volatility Increases

By John Richardson

WE COULD now be in a destocking phase in petrochemicals markets as oil prices are falling on a surge in US production.

This would obviously mean lower petrochemicals pricing, leaving companies that have overbuilt raw material inventories …

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House Of Cards Waiting To Fall: Oil, Equities And The Economy

By John Richardson

HOW much of the rise in oil prices since June of last year has been down to the fundamentals of supply and demand versus the hedge funds taking out a record number of short positions?

We are …

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US Stock Market Decline Highlights Consumer Spending, Income And Debt Risks

By John Richardson

THE SUSTAINABILITY of the US economic recovery rests on the willingness of people who cannot afford to spend money to continue to spend money.

In order to explain what I mean, let’s start with income and wealth …

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Petchems Pricing Power, Operating Rates Tell Real Economic Story

By John Richardson

PETROCHEMICALS and polymers pricing power – how easily petrochemicals producers can pass-on higher oil prices to their customers – is a great measure of the strength of the overall global economy.

The reason is that petrochemicals are …

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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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Global Economy In 2018: Stimulus Withdrawal Threatens Complacent Outlook

By John Richardson

IN TODAY’S world of soar-away stock markets backed up by the notion that the sustained global economic recovery will not be derailed in 2018, there is a need to detail the major risks out there.

Today’s post …

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Asian Polyethylene Producers: What You Must Do Now $70 Crude Is More Likely

By John Richardson

THE facts on the ground in global crude markets have shifted even further in just two days. Now it seems more likely that oil prices will rise to $70 a barrel or above in Q1 of next …

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How US Polyethylene Exports To China Could Come To A Halt

By John Richardson

THE US has abundant shale gas reserves that have in effect been solidified into new polyethylene (PE) capacity, which is largely for export as this is a cheap way of shipping ethane.

If you subscribe to the …

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