Following on from my final review of China’s polypropylene (PP) markets in 2021 , along with a further outlook for the rest of this year, see below the same for high-density polyethylene (HDPE). I will complete the picture with reviews and outlooks for linear-low density PE (LLDPE) and low-density PE (LDPE) next week. By John […]
Asian Chemical Connections
China PP in 2021: final review and further outlook for this year
By John Richardson The first point to make as I write a final review of China’s polypropylene (PP) market in 2021 – also including a further outlook for the rest of this year – is that ICIS supply and demand and trade data is pure gold dust. The data inform commercial decisions that can save […]
New supply chain problems prolong the big HDPE divide as imbalances build
By John Richardson WHEN POLYETHYLENE (PE) and polypropylene (PP) markets become truly global again remains anyone’s guess. But what’s clear in my view is that rebalancing must take place at some point, The chart below, using high-density polyethylene (HDPE) margins as an example, illustrates the extent of the disconnect between different regions. The chart shows […]
Why China’s PP demand may only grow by 1% per year in 2022-2032
By John Richardson MOST people now accept that China’s real estate sector, worth some 29% of the country’s GDP, is deflating with significant long-term implications for petrochemicals growth. But because China’s GDP growth is very likely to still grow and because China’ existing demand is already so big the common view is that there is […]
European and US LLDPE margins may in 2022 sink towards northeast Asian levels
By John Richardson A GOOD FRIEND and contact messaged me this week to say, “Wow, this is complicated”. Yes, I am afraid so. These are the most difficult-to-read polyolefins markets I can recall in my 25 years of following the industry. I don’t see forecasting outcomes for this year becoming any easier. But, using linear […]
China PP in 2022: either 3.6m tonnes net imports or 500,000 tonnes net exports!!
By John Richardson AGAIN, PLEASE DON’T SAY I DIDN’T WARN YOU. Regular readers of the blog will not be surprised in the slightest by the chart below. This is the first time northeast Asian (NEA) naphtha-based polypropylene (PP) margins have turned negative since we began our margin assessments in January 2014. Propane dehydrogenation-based NEA PP […]
China HDPE negative 2021 growth, declining imports underline need for new business model
By John Richardson Following on from my post on Wednesday, please study the quite remarkable chart below, and, if you are not making Common Prosperity the very centrepiece of your strategic planning process, ask yourself, “Why not?”. Then please, please change direction before it’s too late. What you can see are the ICIS estimates for […]
With Common Prosperity set to dominate 2022, here is some essential history
By John Richardson THERE IS ONLY one slight problem with the argument that developing world demand is behind the boom in petrochemicals demand over the last 20 years: the data. Sorry to begin the year on a rather sarcastic note, but this is unfortunately a drum I feel I need to keep banging to support […]
Global PP market and Omicron: deflationary pressures build
By John Richardson THE OMICRON outbreak is piling further pressure on already extremely stressed supply chains as Europe struggles to cope with the highly infectious variant. As my ICIS colleague, Tom Brown, said in this ICIS Insight article, tapping into market intelligence from our pricing editors: “The supply chain pressures that have dogged the European […]
China phenol self-sufficiency: another one could bite the dust
By John Richardson IT IS A FANTASTIC song from a great band. Another One Bites the Dust by Queen underlines the versatility of a band that could not be pinned down. They never stuck to a genre, but instead adhered with the strength of epoxy resin-based glues to excellent song writing and performing. When analysing […]
Jump to page: