Tag Archives | Petrochemicals

Sinopec Jul12.png

Sinopec focuses on political and social targets

Sinopec is China’s main company in refining and chemical markets. Although it is listed on world stock markets, the government remains its largest shareholder with a 76% stake. As such, it follows government priorities rather than western commercial logic. The chart above, from the blog’s major new study of the company, highlights some of the […]

Continue Reading
Satchell May11.png

Petchem volumes slide in all 3 major regions

Volume is a key driver for chemical company profits. High volume means operating rates increase, reducing unit costs. Companies also gain more pricing power. But when volume is low, the reverse happens. Thus the above chart from leading analyst Paul Satchell of Collins Stewart is telling an important story. It shows: • Volumes were very […]

Continue Reading
D

Time to check Downturn contingency plans

Two years ago, the blog began to survey global stock markets on what turned out to be the day they began their major rally. Its end-April launch of Downturn Alert may prove similarly fortuitous. Since then (shaded area), Brent crude oil is down 8%. Similarly naphtha is down 11%, benzene down 2%, HDPE 6% and […]

Continue Reading
Penkuhn.png

BASF warn on over-expansion and China

The blog was very interested to see a recent ICIS interview with Torsten Penkuhn, BASF’s petchem head in Asia, by Will Beacham. Penkuhn noted: “We are more and more concerned at BASF about an increasing risk of overbuilding once again. We currently see a risk that people are becoming too ambitious, enthusiastic and optimistic. And […]

Continue Reading
Grangemouth.png

INEOS plans refining/technology JVs with PetroChina

The Falkirk Herald, INEOS’s local newspaper in Scotland, has had to wait a long time for its ‘scoop’ of June 2009 to be confirmed. It had reported then that INEOS was in talks with PetroChina about the future of the Grangemouth refinery. As PetroChina noted at the time, “downstream business has a poor margin nowadays […]

Continue Reading

August highlights

Many readers have been taking a well-deserved break over the past few weeks. As usual, therefore, the blog is highlighting key posts during August, to help you catch up as you return to the office. August has been surprisingly busy: Force Majeure reports show worrying increase highlighted the worrying rise in force majeures, which may […]

Continue Reading

White Paper downloads reach 7000

The blog is delighted by the interest being shown in its White Paper ‘Budgeting for a New Normal’ and the recent Mid-Year Update. Almost 7000 copies have now been downloaded. Discussions are also underway with ICIS about producing a new White Paper in Q4, to accompany the blog’s annual Budget Outlook post in October. If […]

Continue Reading
C2 storage.png

Ineos’ Antwerp ethylene terminal a game-changer for Europe’s C2 business

In business, as in war, defence can often be the best form of attack. This seems to be the principle behind Ineos’s announcement that they intend to build a 1 million tonne deep-sea ethylene terminal to feed their 340KT ethylene oxide/glycol business near Antwerp, Belgium. The glycol business is clearly under threat from the massive […]

Continue Reading
Honam.png

Honam’s Malaysia buy opens SEA market share battle

Over-capacity is going to be a major issue for the petchem industry over the next few years. Asian producers, in particular, are likely to be worst impacted. The reason is that they have relied on exports to China taking up to 50% of their production. But now China’s own production is ramping up, reducing the […]

Continue Reading
New Normal Jun10.png

Petchem supply/demand enters the New Normal

The blog’s major series this week has focused on the changes that seem to be taking place in markets for the petchem ‘building block’ products, particularly ethylene, propylene, benzene and paraxylene. These changes in relative price and availability are of vital importance to a wide range of downstream chemical products. They may well prove to […]

Continue Reading