Tag Archives | polymers

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ExxonMobil says older plants need to shut

Restructuring will become an important issue for the chemical industry, according to John Verity, ExxonMobil’s polyolefins head. Speaking to ICIS news, he was downbeat about short-term prospects, noting that whilst some restocking is currently underway, “we are not likely to see any real demand until the end of the quarter”. Earlier, in his speech to […]

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Brazil’s exports fall 29%

The emerging economies, which built their growth on exports to the West, are being badly hit by the global recession. Brazil, where poverty levels were at their lowest level for 30 years, is now seeing recent gains unwind. Its exports fell 29% in January, the biggest drop since 1991. This followed a terrible December, when […]

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GM, Chrysler’s US sales collapse

January’s US auto sales figures gave no hope that demand is yet bottoming out. Volumes were down 41% versus 2008. As the chart shows, the main pain was felt by GM and Chrysler, who saw sales down 49% and 55% respectively. A key factor in the downturn for both companies was a collapse in fleet […]

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ExxonMobil weathers the storm

One can still rely on ExxonMobil to deliver positive results, even whilst the world is collapsing around them. Friday’s report showed Q4 chemical volumes down 20%, as a result of hurricane effects and destocking. But although earnings tumbled from $1.1bn in 2007, they were still in the black at $0.2bn.

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S Korean exports drop 33% in January

The scale of the crisis in Asian economies becomes clearer, month by month. Exports account for nearly half of S Korea’s GDP. In January, these dropped 33%. Of course, January is always a slow month, due to the Lunar New Year, but these figures followed earlier falls of 19% in November and 18% in December. […]

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China plans “extraordinary measures”

China faces a difficult outlook, after the collapse of its main export markets in the West. Interviewed by the Financial Times today, China’s premier, Wen Jiabao, sets out a pragmatic list of “forceful” actions that are now underway. Most are Keynesian measures, aimed at putting money in the pockets of those who are most likely […]

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Global chemical production down 4.4% in November

Global chemical production is now falling at an alarming rate, down over 4% in November, as core demand from housing/construction and auto markets collapses. Only the Middle East is now seeing positive growth year-on-year. As the chart shows (using ACC data): • N America is now down 12% • W Europe/C&E Europe are down over […]

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INEOS announce €1bn inventory loss in Q4

In early October, I forecast that we were about to revisit “the scariest moment of my 30 year chemical career”, adding that: “The moment the blog has long feared, and warned about, may be about to arrive. It appears that we may be about to revisit 1980, when for some weeks it seemed that demand […]

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European olefins move to monthly pricing

The blog warmly welcomes the move by players in the European olefins market to re-engage with monthly pricing. The rationale for its support is based upon the conclusion of the major report that International eChem produced 3 years ago, Pricing for Profit: “The cumulative impact of the current pricing mechanisms has caused the wider marketplace […]

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European auto industry shuts down

Several European chemical companies have been undertaking surveys of likely near-term demand from the auto sector, and have been kind enough to share their conclusions with the blog. The results are not encouraging. It appears that every European car producer has announced plans for an extended Christmas shutdown of at least 2 weeks, compared to […]

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