YESTERDAY we examined some of the factors shaping long-term outlook for polyethylene (PE) exports to China. And, today, as promised, we go into detail on another part of the story: Influences on future feedstock-cost position of US producers. What follows only scratches the surface. There are many more complexities that we shall examine in future […]
Asian Chemical Connections
China PE Imports: A Long-Term Outlook
By John Richardson THE chart below is worth revisiting, and pondering again, as we attempt to assess the future of polyethylene (PE) exports to China. In the case of the Middle East, as the chart shows, it has been a case of “so far so good” in 2013. Overall PE import volumes from the […]
China’s New Petrochemicals Logic
By John Richardson WINNING approval for petrochemicals projects in China no longer seems to be as straightforward as it used to be because of increasing anger over the state of the environment and new economic priorities. The stalled paraxylene (PX) project at in the city of Kunming, in Sichuan province in southern China, is […]
European Demographics Challenge US Export Assumptions
By John Richardson US feedstock advantages appear to provide an almost overwhelming case for a big wave of cracker and downstream investments, particularly in polyethylene (PE) and polypropylene (PP). In contrast, Europe is struggling with much-higher feedstock costs and low economic growth, resulting in the possibility of many more capacity closures. Only last week, for […]
It Is Not A Question Of If, But Rather When
By John Richardson IT is not a question if, but rather when Xi Jinping and Li Keqiang decide that enough is enough and get on with tackling China’s growing financial imbalances. That is if they don’t want the whole house of cards to eventually collapse, which we believe is not the case. These imbalances have […]
Malaysia: Taking The Long View
Source: Malaysia Petrochemicals Association By John Richardson THE problems in Malaysia have been evident for a long time. But thanks to the irresponsible and failed actions of the US Fed, the flow of funds into the Southeast country had led to a papering-over of the cracks in its economic growth model. The same, as […]
China Market Intelligence Still Contradicts PE Demand Rise
By John Richardson The debate continues as to exactly why polyethylene (PE) apparent demand (domestic production plus imports) in China rose by 13% in January-June of this year compared with the same period in 2011. Why the anxiety? Because most of the industry people that the blog speaks are still finding it difficult to match […]
Australia and The US: History Could Repeat Itself
By John Richardson A PERTH-based businessman who made a very basic piece equipment for the Australian mining industry (details disguised for confidentiality reasons) incurred total production costs of just Aus$6 for each item he produced as a against a sale price of Aus$60 a time. Yes, this is not printing mistake – Aus$60! Quite […]
Crossing The River By Feeling The Stones
Deng Xiaoping By John Richardson ANDREW Mackenzie, in his first speech in Australia as BHP Billiton’s new chief executive, said that global demand for commodities would grow by 75% over the next 15 years, driven by continuing urbanisation in China and the growth of Asia’s middle classes. The blog wishes that it shared Mr […]
Adjusting Inventories To Lower China Growth
By John Richardson EXCESSIVE inventory building across a range of commodities in China, including petrochemicals, continues to worry the blog. One reason, as we discussed yesterday, might be that traders are in the midst of a liquidity squeeze as a result of the late June credit crackdown. They have therefore taken out further very-aggressive positions […]
Jump to page: