In the SuperCycle, polyethylene (PE) demand growth was closely linked to economic growth. Our research for the 2008 Feedstocks for Profit study showed, for example, a 1: 1 ratio between global growth in GDP and PE demand between 2002-7. But since the Crisis began, the linkage has become much more complex. China’s market presents the […]
Chemicals and the Economy
New propylene supply increases market uncertainty
Almost unnoticed, an important shift is underway in propylene markets. Propylene (C3) is the second largest olefin after ethylene, with production around 75 million tonnes in recent years. Its main sources are steam crackers and refineries – neither of which see C3 as their core product. Thus the recent increased use of ethane as a […]
TOTAL moves forward on methanol to olefins
Coal was the original source of most chemicals. It was then replaced in the 1960’s by oil-based feedstocks. Their lower cost of manufacturing led to the boom in applications and volumes seen over the past 50 years. More recently, biomass’ potential is now being explored. At the same time, major companies such as BASF, Dow, […]
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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