Source of picture: Dallhouse University, Canada By John Richardson THE incredibly smart way in which polyolefin producers have managed production since the great collapse of September 2008 continues to defy what appear to remain some very uncertain, and some cases weak, macro-economic fundamentals. As we discussed on Wednesday, China faces a significant demand-growth gap […]
Asian Chemical Connections
A Repeat Of The 2008 Collapse On The Cards
“Only another thousand or so years to go…..” Source of picture: Atlantic Council By John Richardson HERE we go again, eh? Yes, as rising crude-oil prices and overall inflation pose a major threat to the petrochemicals industry. Nothing the blog has read or heard over the last two weeks has given […]
Crude firm but naphtha under pressure
By Malini Hariharan Asian naphtha prices, which were expected to remain firm this quarter, have come under pressure as large volumes of European material are heading towards this region. Naphtha was trading at around $885/tonne cfr Japan last evening supported only by the strength in crude oil prices with WTI at $91.69/bbl and Brent at […]
Petronas mulls cracker at Kerteh
By Malini Hariharan There is finally some movement at Petronas. After last month’s joint announcement with BASF on a study for a Euro1bn investment in speciality chemicals, news has emerged that the Malaysian major is also exploring the feasibility of a new petrochemical complex at Kerteh. The complex would have a 1m tonnes/year ethane cracker […]
Qapco studies expansion and Echem looks to Sabic
By Malini Hariharan Investment activity is picking up in Qatar. After Total, Shell and ExxonMobil confirmed their interest in new projects, Qatar Petrochemical Co (QAPCO) is talking on expanding its cracker. The company is working on expanding its 720,000 tonne/year cracker to 900,000 tonnes/year by the first quarter of 2014, said QAPCO’s board director and […]
Gaping Chasm Between Effective, Real Op Rates
By John Richardson A gaping chasm has opened up over the past 18 months between nameplate capacities and effective operating rates, resulting in much greater focus on the latter. It isn’t easy and it is getting ever-more complicated to assess the actual volumes likely to hit markets. There is a considerably well-supported school of thought […]
Are you feeling the pinch?
By Malini Hariharan With crude oil at around $88/bbl and naphtha hitting $890/tonne cfr Japan on Monday, the pressure is building up along the olefins chain. Ethylene is trading at around $1200/tonne cfr NEA while propylene is at $1280/tonne cfr NEA. Offers of ethylene at above $1250/tonne and propylene at $1320-1330/tonne have not found any […]
Overconfidence The Bisk Risk For 2011
By John Richardson OVERCONFIDENCE is perhaps the biggest risk for 2011 as a result of sales volumes that have this year exceeded even the most wildly optimistic forecasts. The danger is that we have yet to see the worst of this current petrochemicals cycle. Companies and chemicals analysts might have got a little ahead […]
US Shale Gas: The Truth Versus Perception
Source of picture: alfin2100blogspot.com By John Richardson SINCE when has the truth mattered in the battle between environmentalists and the oil, gas and chemicals industries? This is a game of perception on both sides as estimates of risk are heavily subject to data that is either biased in the way it is collected or […]
Will Three Still End Up As One in Qatar?
By John Richardson SHELL Chemicals announcement that it has signed a memorandum of understanding (MOU) for a cracker and derivatives project in Qatar seems to have upped the ante in what could be a struggle for only one parcel of feedstock. Graeme Burnett, Total Petrochemical’s senior vice president for Asia and the Middle East, in […]
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