Tag Archives | polypropylene

China’s polymer expansions make new US exports hard to place

China used to be the manufacturing capital of the world.  It would buy raw materials, and sell finished products to the West.  But these volumes are now in decline.  The West’s ageing populations already own most of what they need, and their incomes are reducing as they enter retirement. So China’s business model is changing. […]

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US ethylene output rise warns of market share battles ahead

“The reality is the US from a chemical standpoint is a very mature market. We have some demand growth domestically in the US but it’s a % or two – it’s not strong demand growth,” Pryor said, adding that polyethylene hardly grew in the US in a decade. “That is not going to change. “The […]

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Propylene price collapse highlights New Normal world

Everyone wants to assume that markets will soon be back to “normal”.  Consensus thinking now accepts that China will be a bit slower than before – but it argues that 6.5% GDP growth is still pretty good, even if it isn’t double digit.  And it suggests that persistence, and “staying the course” is vital for […]

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China’s PP production rises 25% as it moves into higher-value export markets

Everyone is now beginning to notice the change in economic policy in China.  And concern is rising about the outlook for all those new petchem investments about to come online, whose rationale has been the need to supply ever-increasing growth in Chinese demand.  The chart above highlights the reality behind this wishful thinking: Everyone “knew” […]

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Polypropylene highlights impact of China’s new economic direction

Polypropylene (PP) is one of the world’s major plastics – used in areas as diverse as car bumpers and food packaging.  And in recent years, consumption has soared due to China’s seemingly insatiable demand, as it became the manufacturing capital of the world. But now, all that is changing.  As we warned in chapter 2 of ‘Boom, Gloom […]

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Deflation gains: China’s plastics market sees over-capacity

More and more commentators are beginning to recognise that deflation is becoming inevitable in many major economies: China’s producer prices fell -4.3% last month, and its consumer prices rose just 0.8% Eurozone consumer prices fell in December to -0.2%, and are likely to have fallen further in January US prices rose just 0.8% in December and are […]

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Turkish plastics markets see imports fall for first time since 2008

Turkey is the blog’s “go-to” market when it wants to confirm trends in global markets.  The reason is that Turkey has a very successful downstream industry, but has failed to invest in upstream capacity.  This means it is essentially an opportunistic market from a sellers’ viewpoint. During good times, exporters will only divert product from […]

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Russia’s chemical production continues to grow

Russia has been the great exception in regional chemical markets. Normally, production growth starts at a high level, often 15% a year or more, and then slows as markets become more mature. But in Russia, output collapsed with the Berlin Wall after 1989, and growth was actually negative until the mid-2000s. Since then, there has […]

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Petchem markets become more complex

Our annual Asian conference in Singapore (co-organised as always with ICIS) was very interesting this week. We had some fascinating presentations from major companies including Reliance and Thai Oil, and China insights from CICCC and Chemease. Shell’s GM for strategy, Alexander Farina, discussed changes in cost competitiveness between benzene (grey column) and propylene (red) over […]

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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 […]

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