By John Richardson CHINA’S PE import growth remains remarkably strong, as the above chart indicates. The May data show that as global supply across all three grades significantly increases this year, with LLDPE and LDPE seeing the biggest increases, China is helping to absorb a great deal of these extra tonnes. The crucial question for […]
Asian Chemical Connections
US Govt Policy, Weaker China Indicate Further Oil Price Decline
By John Richardson OIL markets have reached an important tipping point as the bulls and the bears try to exert decisive influence. There is resistance from the bulls which helps to explains why, after last week’s collapse in oil prices, crude bounced back last Friday and on Monday of this week. But the physical realities of the market […]
China’s OBOR Creates “Win, Win” Demographic Solutions…
…and in the process, it could radically reshape global geopolitics, economic growth patterns and chemicals trade flows By John Richardson THE above map, from this excellent FT Beyondbricks blog post by Paul Hodges and Daniël de Blocq van Scheltinga, illustrates why demographics always drive economic growth. If you don’t follow and understand demographics, you won’t understand economics. […]
China’s Soil Pollution: The $1,000 Trillion Problem
By John Richardson THE ESTABLISHED approach to dealing with soil polluted by chemicals waste involves washing the soil and treating it with bacteria. These were the methods used ahead of the 2012 London Olympic Games, reports The Economist. The cost was £3,000 ($3,900) per cubic metre, reaching a total of £12.7m to decontaminate some 250 hectares. […]
Tumbling Oil Prices: Implications For Asian Polyethylene
By John Richardson DON’T say that I didn’t warn you. Oil prices now look much more likely to hit my forecast of $35//bbl, or lower, by Q4. Such is the downward momentum right now in crude markets that it is perfectly possible that this price level will be breached well before then. As of Tuesday, […]
Oil Prices Falling Towards $35 On US Supply, China Demand
WTI continues its journey towards a possible $35/bbl by Q4 of this year on rising US shale-oil production and a slight slowdown in the Chinese economy with big implications for global economic growth. And $25/bbl or lower crude in 2018 seems perfectly possible on these same dynamics. By John Richardson THE US shale oil industry was never going to […]
China Plans 13 New Crackers In Move Towards PE Self-Sufficiency
By John Richardson DETAILS are emerging of what could be as many as 13 new crackers in China that would all be on-stream very probably by 2025. I originally thought only around ten new crackers would be built by that date. This offers further support to my argument that it is perfectly possible that China will reach “effective” self-sufficiency […]
Soft Brexit, Hard Brexit, No Brexit, A Labour Govt – Take Your Pick
By John Richardson IT was of course a gamble that backfired hugely. The UK’s General Election would, according to Prime Minister Theresa May, bring certainty and stability to politics during this very important period in British history. Instead, though, the PM now looks set to be leading a very fragile government with every possibility that […]
China PP Market Underlines Return To Global Deflation
By John Richardson CHINA’S polypropylene (PP) net trade, which is imports minus exports, fell by 31% on a month-on-month basis in April to around 316,000 tonnes. That was to be expected given the 42% surge in net trade in Q1 2017 over the first quarter of last year. But if you look at the period from January […]
China’s “Appetite For Pain” Makes $35/bbl Crude More Likely
The Chinese government is showing great determination in its latest battle against excessive and highly speculative lending. This will carry on as a cushion of strong GDP growth has been created, allowing a slowdown that will surprise many people with its severity. This makes further falls in global commodity prices likely – including a decline […]
Jump to page: