Tag Archives | Polyethylene

D

China PTA market leads Downturn Alert lower

The blog launched its Downturn Alert last week, since when we have seen dramatic moves in oil markets. These may well lead to a slowdown in chemical orders, as buyers now have no need to secure supplies ahead of price increases, and may instead start reducing inventories to more ‘normal’ levels. • Brent (dotted red […]

Continue Reading
D

Downturn Alert launches in the blog

They don’t ring bells at market turning points. Otherwise, we could all retire to the Bahamas. But there is growing anecdotal evidence, from chemical buyers and the main retailers, that we may have reached at least a temporary market peak. And Brent crude oil has been stable for 4 weeks at $125/bbl. Equally, since 1970, […]

Continue Reading
C2 Apr11.png

Ethylene derivative imports threaten European markets

The chart above is a flashing amber light for European cracker operators. Based on ICIS Pricing data, it shows the delta between (a) European and US ethylene contract prices (blue line), and (b) Europe and the North East Asian spot price (red line). Usually, these deltas range between -$50/t and $100/t. H2 2008 was clearly […]

Continue Reading
China lend Mar11.png

China’s economy hits the ‘pause’ button

The blog’s recent Asian visit revealed considerable anxiety about the state of demand in China. As its blogging colleague, John Richardson, has also described, the country’s lending cutbacks may finally be taking effect. New official figures for lending and electricity consumption support this view. These are two of the only 3 figures trusted by likely […]

Continue Reading
Jap exports Mar11.png

Japan’s petchem exports focus on PX and styrene

The blog is still shocked by the terrible events in Japan. It would like to express its deepest sympathy to all those who have suffered loss. For those of us far away from the disaster, life has to go on. It will be some time before its full impact becomes clear. But in a crisis […]

Continue Reading
C2 margins Feb11.png

Asia’s olefin margins weaken vs Europe, USA

The ICIS weekly margin reports continue to provide essential reading for anyone in the petrochemical value chain. The above chart is particularly fascinating, as it highlights the significant differences between cracker margins on a regional basis over the past 2 years: • Europe (red column) is the clear winner over the period. Its margin bottomed […]

Continue Reading
China PE imports Jan11.png

China’s PE imports slip: Middle East gains market share

China has been the main source of chemical and polymer demand growth over the past 2 years. But newly released trade data suggests its import volume on core products such as polyethylene may now be reducing, as more domestic capacity comes online. Equally, Asian producers, and the USA, face strong competition from low-cost Middle East […]

Continue Reading
C2 v C3 C4 Jan11.png

Olefin ‘spreads’ remain volatile

Last March, the blog highlighted the major changes taking place in ethylene, propylene and butadiene prices versus naphtha. It also analysed them in ICIS Chemical Business in September. The above chart now summarises the 2010 outcome, using European prices to enable comparison over the last 30 years. It was a most remarkable year. The chart […]

Continue Reading
Brazil left.jpg

Petrobras moves forward on green polymers

The blog was very pleased to talk recently to Business News Americas about developments in Latin America. Please click here if you would like to read the full interview. It highlights the key role being played by Brazil’s Petrobras, particularly in the development of ‘green polymers’. These are still very small in volume, compared to […]

Continue Reading
LDPE.png

Oil prices create European polyethylene “shortage”

Oil price rises reduce chemical demand. Initially, as we saw in 2007 – H1 2008, and in 1979 – 80, everything seems fine. Consumers continue to buy, and we all reassure ourselves that demand is still robust. But, in fact, end-use demand starts to fall when prices rise, as individuals cut back on discretionary spending […]

Continue Reading