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Shenhua shares double on IPO

Coal-to-chemicals just took a further step towards becoming a major source of chemical production once again. Yesterday, major coal producer Shenhua Energy listed on the Shanghai stock exchange, and saw its shares jump 93% to value it at $173bn. Shenhua is the world’s second largest seller of coal, after the US’s Peabody Energy, and it […]

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EPCA 2007

It seems likely that this week’s European Petrochemical Association annual meeting in Berlin will mark a turning point in the petchem cycle. Looking back over 2007, Boy Litjens, CEO of Sabic Europe, told ICIS@EPCA that performance this year had been ‘excellent’, and that they would ‘definitely report the best results ever’. He was also hopeful […]

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Dow warns

Dow CEO Andrew Liveris has spelled out very clearly his concerns about the impact of the US subprime crisis and high energy prices. He said that last week’s Fed Funds cut ‘flirted with danger’ in terms of the risks it took with inflation, although it was clearly necessary in order to tackle other problem areas. […]

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One week later

A week ago, I wrote that it would be important to see if ‘the US Federal Reserve can pull a rabbit out of its hat’ at its meeting later that day. The dust has now settled on its 0.5% Fed Funds rate cut, and one can see that short term liquidity has certainly been improved, […]

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The hurricane touches down

Extraordinary events have taken place in the UK since my posting on Friday: • A bankrun took place on the 8th largest bank, Northern Rock, with lines of depositors queuing for hours outside its branches all over the weekend and Monday. • Faced with this, the UK Finance Minister was forced to announce that the […]

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Northern Rock – subprime contagion spreads

When the US subprime crisis began, we were assured by the ‘experts’ that it was only a small problem, involving a minor segment of an otherwise robust market. However, the more one read about the situation, the more untenable this view seemed to be. Equally, we were told by other ‘experts’ that there was no […]

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To cut, or not to cut?

One of the benefits of writing this blog is that it provides the opportunity to research behind the headlines, and better understand what is really happening. Friday’s US payrolls report, which showed the first loss of US jobs for 4 years, is a classic example. Nobody in the chemical industry should have been too surprised […]

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Blackstone moves on China BlueStar

There’s an interesting indication today of the changes taking place in the Chinese economy. Bloomberg are reporting that Blackstone, the US private equity group, is to purchase around 18% of specialty chemical company China BlueStar for $500m. This will be Blackstone’s first Chinese investment, and follows the Chinese government’s $3bn investment into Blackstone in June. […]

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Two swallows

This week has seen more downbeat news on US auto and housing sales. Ford said their total August vehicle sales were down 14% versus August 2006, and that their car sales were down by an amazing 34%. Toyota, who have been growing market share, said they were down 2.8% in total, and that their car […]

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Every mania is based on an illusion

I first wrote about the subprime crisis two months ago, as it began to be noticed in the press. Housing represents an important source of chemicals demand, and so it seemed to have potentially major implications for the chemical industry. Since then, it has become clear that the crisis could have far-reaching implications, if not […]

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