Tag Archives | LyondellBasell

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Aromatics face challenges ahead

Attendees had a fascinating two days at our annual European Aromatics & Derivatives Conference in Berlin this week. As always, it was co-organised with ICIS, and featured a strong list of speakers: Sven Royall, VP at Shell Chemicals, put forward an optimistic outlook for benzene derivatives. He argued that substitution of PS by PP had […]

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LyondellBasell to exit Chapter 11

LyondellBasell (LBI) is to exit from Chapter 11 bankruptcy on 30 April, 15 months after entering it in January 2009. The past 15 months have been an expensive lesson for those debt-holders who financed Basell’s purchase of Lyondell in July 2007, at the peak of the market. LBI entered Chapter 11 with $24bn of debt. […]

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CEOs remain cautious over 2010 Outlook

The blog’s quarterly survey of company Outlook statements shows CEOs remain very cautious. There has been a rebound after the destocking disaster of Q4 2008 – Q1 2009. But there seems little confidence that we will quickly return to the levels of demand and margin seen in the 2003-7 Boom period. China’s stimulus and loan […]

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The blog in 2009

The blog is now 2.5 years old. Readership continues to grow, both within the chemical industry and its investment community. It is now read in 121 countries, and 2735 cities, versus 89 countries and 1244 cities a year ago. Readers are also very loyal, with 23% reading it twice a week. Its readership covers all […]

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Dalian LLDPE prices now seem to follow crude oil

China’s Dalian polymer futures market continues to have a major influence on regional, and global, polyethylene markets. But November’s trading volume was lower than a year ago, at 25 million tonnes. This is the first negative annual growth since volume took off in June last year. Last month, the blog noted a comment from LyondellBasell […]

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Reliance offers c$10bn for LyondellBasell (Update 1)

LyondellBasell (LBI) yesterday confirmed the rumoured takeover bid from Reliance. In a statement posted on its website, it says it has “received a preliminary non-binding offer from Reliance Industries Limited to acquire for cash a controlling interest in the company contemporaneously with the company’s emergence from Chapter 11 reorganization“. It noted “this offer is in […]

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Insights from LyondellBasell and BASF

Recent comments from LyondellBasell’s COO, and BASF’s CEO, seem worth highlighting as we come to the end of the results season. Ed Dineen noted that China’s polyethylene demand seems partly linked to changes in crude oil pricing, “It turned down somewhat as we saw crude retreat a little, but as crude turned back up toward […]

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Difficult times call for tough decisions

Downturns are difficult times. There is always the hope that markets might improve, and this can delay the implementation of tough decisions on plant closures. Nobody wants to shut down, and then see a competitor benefit from an improving market. But if markets do stay depressed, then precious cash is being wasted whilst plants operate […]

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$26bn LyondellBasell restructuring hits legal minefield

Vita’s restructuring was relatively simple from a legal point of view, as it just involved European rules. But Lyondell Chemical’s bankruptcy filing last month under the US Chapter 11 process seems to have thrown up some very complex legal issues. This is because it involves two different sets of bond-holders – those who bought the […]

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LyondellBasell may be largest-ever bankruptcy

The financial fallout from the Lyondell (LBI) bankruptcy continues, as the banks slowly begin to acknowledge their losses. According to Bloomberg, RBS has taken a $1.47bn hit, Citigroup $1.4bn, and Goldman Sachs $850m. UBS are also believed to have lost at least $500m. But like Bank of America (new owners of Merrill Lynch), they have […]

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