Source of picture: Imaginechina/Rex Feature By John Richardson ONE can interpret last week’s release of January purchasing manager’s indices for January just about any way you like. Thus, Reuters wrote on 2 February: “China’s official PMI released by the government’s statistics bureau showed factories grew slower-than-expected in January, with a reading of 50.4, easing […]
Asian Chemical Connections
US Shale Row Flares UP
Sorry for the corny headline; we couldn’t resist it. By John Richardson THE argument that the switch to natural gas from coal and oil is good for the environment has been further undermined by reports earlier this week of the big increase in the amount of gas-flaring in the US. When the blog visited […]
Beware Of Excessive Optimism
By John Richardson CHEMICALS and polymer markets have enjoyed a very strong recovery in Asia since November/December, according to many of the traders we have spoken to. “We are getting $150-200/tonne more for benzene and toluene in January compared with early November. There has been a strong recovery in confidences,” said a Dubai-based trader. […]
China’s Graduates
China graduates at a job fair in Chongqing in November 2012 Source of picture: HAP/Quirky China News/Rex Features By John Richardson CHINA sometimes seems like several different countries from the super-rich elite to the middle classes whose average annual disposable income is less than the cost of one square metre of an apartment in Beijing to […]
India PVC Growth In Context
By John Richardson INDIAN polyvinyl chloride (PVC) demand is expected to increase by 13-14% in the financial year ending 31 March 2013 compared with just 3% growth in 2011-2012. This is further evidence that, just perhaps, the decline in the country’s overall macro-economic environment has bottomed out. “In volume terms, consumption will reach around 2.25m […]
China: The Politics Behind The “Recovery”
By John Richardson THE overall HSBC flash purchasing managers’ index for January, which was released yesterday, was at a two-year high (see the above chart), with the sub-index of production at a 22-month high. This is great news for equity values and commodity prices, including petrochemicals. We might well see a rally in petrochemicals prices at […]
PTA Price Decline Reflects Realities
By John Richardson The end of the eight-week long bull-run in China’s purified terephthalic acid (PTA) pricing might well indicate a wider problem about to beset other petrochemicals: Reality undermining the positive sentiment of the early part of this year. “PTA prices surged by 10% from early November to early January, mainly led by a […]
China’s Environmental Balancing Act
A woman wearing a mask looks across the Pudong on 16 January this year Source of picure: Zuma/Rex Features By John Richardson A DISPUTE between state-owned refiners Sinopec and PetroChina and environmental regulators serves as a good example of the difficulties China faces in reforming its growth model. The debate about the environment is […]
Ten Solutions For The Global Economy
By John Richardson LAST week we highlighted how a Boston Consulting Group study has reached many of the same conclusions as our e-book, Boom, Gloom & The New Normal, on the fault lines in the global economy. Similarly, many of the ten solutions suggested in the study are in line with what we think needs […]
Labour Supply After Chinese New Year
Chinese job seekers at a recruitment fair Imaginechina/Rex Features By John Richardson As petrochemicals markets begin to slow down ahead of the Chinese New Year, which this year falls on 10 February, a lot of attention is, as always, being focused on the likely strength of demand after the holidays. The hope is that […]
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