Source: Wang Feng, director of the Brookings-Tsinghua Center for Public Policy in Beijing, from an article published in the China Economic Quarterly. By John Richardson ONE of the explanations for China’s disappointing petrochemicals demand growth during 2012 is that even where export-focused factories in southern and eastern China can find sufficient orders to run […]
Asian Chemical Connections
US Chemicals Slowdown
US PE contract pricesBy John Richardson THE American Chemistry Council’s Mid-Year Situation and Outlook Report, which was released this week, helps explain the background to the weakness in demand seen in the US polyethylene (PE) market. What goes for PE will, of course, apply to the rest of the US petrochemicals business. In the case […]
China Jan-May PE Demand Declines
By John Richardson THE chart above, from data provided by Global Trade Information Services, further confirms that all hope of any substantial growth in China’s commodity grade polyethylene (PE) market during 2012 needs to be given up. Companies, and chemicals investors, should further revise their expectations. The five percent decline in apparent demand growth (imports plus […]
Chemicals In A Vicious Cycle
By John Richardson OIL prices could fall to as low as $35-40 a barrel or might slip no further than $60-70 a barrel, depending on which analyst you belief. And we know of one global polyolefins company that is working on the assumption that crude, both West Texas Intermediate and Brent, will trade […]
US Targets China VAT Rebates
Mitt Romney would declare China a currency manipulator Source of picture: Wikimeda By John Richardson China’s practice of providing value-added tax (VAT) rebates for importers of raw materials who then re-export finished goods is the subject of a new US Department of Commerce ruling. And a leading international trade lawyer […]
China Still Destocking
By John Richardson A NEW report from HSBC supports our argument that China’s synthetic resin market has yet to bottom out. Big structural changes in China’s economy are an additional factor, in our view, to the slowdown in China not covered in the comments below. The bank highlights, of course, the weak business environment […]
Northeast Asia PE Weakest Margins
Source: ICIS pricing Weekly Asian PE Margin Report By John Richardson The slide above shows how Northeast Asian naphtha-based polyethylene (PE) producers are struggling as a result of the weak China market (dark blue bars). And it confirms what we were discussing yesterday: The US, with its ethane advantage and with reportedly high […]
US Polyethylene Targets China
By John Richardson SIGNIFICANT volumes of US polyethylene (PE) are heading to China as the States attempts to compensate for weaker domestic sales, understands the blog. Despite the fall in US prices, margins remain strong, creating arbitrage opportunities. US May contracts for polyethylene (PE) settled down by 7 cents/lb ($154/tonne, €125/tonne) from April, following […]
Greek Election Results Change Nothing
By John Richardson HOW long will the relief rally last in oil and equity markets following the Greek election results? Sadly, the answer is not long, because difficult discussions lay ahead for the New Democracy party as it tries to form a government. Greece, also, remains broke and so the Euro crisis is far from […]
Polyolefins And Euro 2012
By John Richardson ASIAN polyolefin traders have little else to do apart from betting on the Euro 2012 soccer championships because of dismal demand, said a Singapore-based trader. “This is the worst I can remember in 10 years in this business, and it is definitely now worse than in 2008,” he added . “The […]
Jump to page: