By John Richardson THE jury is out over whether the recent decline in US propylene prices will re-open arbitrage to Asia for polypropylene (PP). Arbitrage for ethylene has remained strong with Dow Chemical disclosing that 20% of its US production went to Asia during Q1 US propylene contracts for May settled at a reduction of […]
Asian Chemical Connections
US Olefins Price Falls Could Be Turning Point
Flagging-up the dangers… Source of picture: http://www.illusionsofdander.com/2007/08/car-dealerships-and-flag-companies-may.html By John Richardson THE recent 22% and 18% falls in US spot ethylene and propylene prices might be a sign that this yeat’s price rallies have been more the result of stronger crude and petrochemicals re-stocking and supply constraints than sustainable demand increases. As my colleague Nigel Davis, editor of the Insight section […]
Changing expectations
By Malini Hariharan A turnaround in petrochemical fortunes in the US, as a result of falling gas prices, means that Dow Chemical is willing to wait to get the best value for its basic chemicals business. At an earnings call last week, the company’s ceo, Andrew Liveris, was clear that while Dow was committed to […]
Tide is turning
By Malini Hariharan After seeing very strong pricing for the last few months US propylene and polypropylene (PP) buyers have started talking of imminent correction. PP buyers expect a 7-10cent/lb ($154-200/tonne) drop in May prices, reports ICIS news. The prediction is based on improved propylene availability. Earlier this week the US Energy Information Administration (EIA) […]
Aramco-Dow project to be scaled down?
By Malini Hariharan If you are moving a project to a new location then why not take some time to re-examine its configuration? That appears to be the thinking at Saudi Aramco and Dow Chemical for their proposed cracker and derivatives complex in Saudi Arabia. As reported on this blog recently, the mega petrochemical project […]
Commodity Stockpiles A Risky Bet
By John Richardson Inventories of copper, aluminium, lead and nickel have risen as prices for all these commodities have also surged, says this article in The Economist. Source of graph: The Economists Copper stocks total half a million tonnes in metals-exchanges warehouses in what HSBC analyst Andrew Keen describes as a market […]
Polyolefins: A view from the ground
By Malini Hariharan H2 is just two months away but one China-based market participant says that there is still a total lack of clarity on price direction for the rest of the year. Buying activity picked up last week but he is not confident that this can be sustained. And he is certainly not expecting […]
China Polyolefns: Trying To See Through The Data
Source of picture: www.wrh.noaa.gov/hnx/newslet/sum…mber.htm By John Richardson Hope springs eternal when it comes to trying to fathom the direction of the polyolefin market in China. One particular hope rests on March import numbers from China Customs, due to be released later this month. The data might just give a pointer to the extent […]
Surge in Saudi-US PE Exports Reported
Heading West,,Jeddah’s container port Source of picture: http://ofwngayon.com/home/?p=257 By John Richardson SABIC has increased its exports of PE to the US in response to high pricing and what could be weaker demand in China, a source with a North American producer told the blog earlier this week. “I have heard of more linear-low […]
China Polypropylene Market Tightens
By John Richardson Polypropylene (PP) appears to have become very tight in China over the last week as a result of a reduction in import availability and a resurgence in buying activity. “PP is incredibly tight right now because the supply from North America is no longer available for delivery to China,” said a Singapore-based […]
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