Home Blogs Asian Chemical Connections How do Asian cracker operators compete?

How do Asian cracker operators compete?

China, Company Strategy, Europe, Japan, Middle East, Olefins, Polyolefins, Singapore, South Korea, Taiwan
By John Richardson on 21-Aug-2009

Source of Picture: www.autospies.com

Not an easy answer and not one much suited to a few paragraphs of blogging.

But here’s one thought as the competitive environment becomes a great deal more difficult due to new Middle East capacity and the potential for China to move towards self-sufficiency in polyethylene and polypropylene: Have a chat with one of those poor old European refiners facing big naphtha surpluses.

Perhaps the refiners will be willing to do deals on long-term offtake deals at very preferential rates in order to keep operating. While gasoline might be falling in value in Europe for both local consumption and exports, diesel certainly isn’t.