By John Richardson AS crude heads to perhaps as little as $10-15/bbl, you have evaluate the immediate, or first order, effects on the petrochemicals industry and then move to stage two – what it means in the longer term. Right now, you have to worry about the potential for raw material inventory losses up and […]
Asian Chemical Connections
Global Polyethylene Priced Off US Ethane. Why Not?
By John Richardson WHEN you have spent several billion dollars building a brand new US steam cracker complex, you will of course do everything to maximise operating rates to pay back your debts, even if it means pricing off your advantaged raw-material supply. So why not new US polyethylene (PE) supply priced-off ethane, rather than […]
Polyethylene The “Last Man Standing”. For How Much Longer?
By John Richardson POLYETHYLENE (PE) remains almost the “last man standing”. Whereas most of the other chemicals and polymers markets in China, including phenol, polyvinyl chloride and purified terephthalic acid, are mired in almost vanished imports and poor profitability because of severe oversupply, PE appears to be fine. Take the latest import and local production […]
Oil At $25 Or Even Lower By The End Of This Year
By John Richardson AS most people react like a rabbit caught in a car headlight to the latest collapse in crude-oil prices, they need to take note of this: The long term average price of oil, adjusted for inflation, is only $33 a barrel. Why were so many misled into thinking that the natural price […]
Deflation Threatens Asia’s Ethylene-Polyethylene Link
By John Richardson AS you can see from the above chart, ever since April 1997, when we first started providing price quotes for spot Northeast Asian (NEA) high-density polyethylene (HDPE) film grade, it has been spot ethylene rather than spot naphtha prices that have driven HDPE prices. You can find the same pattern for any […]
China’s Chemicals Strategy: More Complexity
By John Richardson THE more that things change to some extent the more they stay the same in China. This is adding another layer of complexity to forecasting where the country’s chemicals industry is heading. Take this article from the New York Times as a great example, where an astonishing 155 coal-fired power plant projects […]
Not Since1992 Has Propylene Been So Cheap Versus Ethylene
By John Richardson EVER since we first started assessing Northeast Asia ethylene and propylene CFR spot prices, which was in November 1992, the market has never been like this. Propylene has never traded at such a big a discount to ethylene. To give you some details from the above chart, you need to break this […]
Cheap Oil Will Help You Sell A Million Tonnes Of Ethylene
By John Richardson TOMORROW’S winners will be those who recognise that oil, oil products such as gasoline and diesel and chemicals markets have changed for good. They will understand that this has generated a whole range of new opportunities to make a profit and to sell huge volumes of product. These two things are obviously […]
Propylene: How To Turn Oversupply To Your Advantage
The world has changed for good. Old ways of running petrochemicals businesses no longer work. Click here for details on an important new ICIS/International eChem study that will help you prosper in this radically different environment. And see below for a brief outline of one of the key themes that we shall explore in the […]
2016 Petchems Budgets: The Risks Of Expecting Even More
By John Richardson WHEN you have had a terrific year your boss will often expect the following year to be even better. But what if the terrific year you have had is down to nothing more than good luck? “When we were planning for 2015 we knew that the economic background would be hard and […]
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