By John Richardson CHINA’S polyethylene (PE) market – a reasonable proxy we often use for the chemicals and polymer industries as a whole – remains worryingly weak, according to several traders and producers interviewed by the blog this week. Modest restocking did take place last week, leading to a very slight improvement in sentiment and […]
Asian Chemical Connections
Opportunities Can Vanish Before You Know It
By John Richardson “Just when you think it is the right time to make an investment case to a board of directors, the particular opportunity you have been studying has an annoying habit of disappearing,” said a business development manager for a global polyolefins producer. His comments reflect the increasingly complex world in which we […]
The C4 challenge
By Malini Hariharan C4 buyers are a troubled lot. Availabilty of the product is tight and will remain so for the foreseeable future. So it was not surprising to hear that concerns about C4 supply dominated discussions at the recent 6th ICIS World Olefins Conference in Brussels. From a surplus in 2010, Europe is predicted […]
No escaping the squeeze
By Malini Hariharan With naphtha crossing $1000/tonne yesterday Asian petrochemical producers reliant on this feedstock remain caught in a tight spot. Costs are continuously rising while market direction for key derivatives is uncertain. Ethylene and propylene prices are holding firm at around $1,350/tonne CFR Northeast Asia and $1,500/tonne CFR Northeast Asia respectively, supported by a […]
Polyolefins – A Ripple In A Teacup
By John Richardson THIS might amount to a little more than a ripple in a teacup if the Middle East crisis brings the global economy down (as we said on Monday, crude could go to $220 a barrel if the crisis spreads to Algeria. Equity and oil markets were jittery yesterday on the belief that […]
Consolidation Thai style
By Malini Hariharan The long-awaited merger between PTT Chem and PTT Aromatics (PTTAR) was finally announced last week. A presentation made to financial analysts gave details on what the merged entity will look like, planned synergies and opportunities for growth. The new company with a total petrochemical capacity of 8.261m tonnes/year and petroleum products capacity […]
Asian C2 Muddle Reflects Wider Uncertainty
By John Richardson ASIAN ethylene markets appear to be in a muddle over the Middle East supply picture. Click here for a graph of the latest pricing – EhylenePrices1March2011.ppt A shipping industry source we spoke to recently insisted that more rather than less C2s were being exported from the region as opposed to the reduced […]
Petchems Confront Another Lehman Bros
By John Richardson THE main issue facing Asian cracker operators a couple of weeks ago was how long co-product credits would continue to compensate for a moribund China polyethylene (PE) market. Feedstock cost is now the biggest immediate worry. A hike in naphtha saw integrated low-density PE (LDPE) margins plummet by $172/tonne, according to the […]
Lotte’s Indonesian gamble
By Malini Hariharan South Korea’s Lotte Group, parent company of Honam Petrochemical, is making yet another bold move. After acquiring Malaysia’s Titan Chemicals last year, Lotte has set its sights on a major petrochemical project in Indonesia. “We will start the feasibility study to develop a petrochemical project in Merak, Banten province, this year. The […]
India projects see more delays
By Malini Hariharan The blog has been updating the status of Indian petrochemical projects and has found that many are running behind schedule. Reliance Industries’ mega cracker at Jamnagar has yet to get off the starting block. The company is holding on to an end-2014 start schedule for the 1.4m-1.6m tonnes/year cracker which will be […]
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