We should have originally written ‘integrated low-density polyethylene (LDPE) in paragraphsix, but instead wrote linear-low density PE (LLDPE). It’s now been corrected and apologies for the error – we will be buying some better glasses (less of this “we” – it’s actually “me”!) By John Richardson The rise in ethylene prices to what ICIS pricing says is […]
Asian Chemical Connections
Refinery Profit Squeeze Threat To Petchems
“Any Old Iron?” Source of picture: http://www.investorfsbo.com/refinery.html By John Richardson A LONG-TERM shift in refinery economics is posing a major threat to petrochemical margins – along with the delayed supply crisis that’s likely to hit the industry at some point over the next year. “Refiners, when the global economy was booming and particularly after […]
SK moving to China?
South Korean producers have for long been dependent on the Chinese market to absorb a large percentage of their output. So it is perhaps not surprising to read that SK Energy plans to move the headquarters of its chemicals division to China. It is also said to be looking at hiving off the chemicals business […]
Map Ta Phut impasse continues
By Malini Hariharan There is no light yet for companies whose projects have been suspended at Map Ta Phut. Last Friday, Thailand’s Central Administrative Court rejected 30 petitions submitted by companies looking to resume work as their projects had received environmental clearance and would not create pollution. “The outlook is not promising,” says a Bangkok-based […]
China PVC Capacity Binge Clobbers Northeast Asia
By John Richardson CHINA’S capacity expansions in industries including steel, aluminium and petrochemicals continue to astound. Take polyvinyl chloride (PVC) for example., where, according to a new report by ChemSystems, “capacity (in China) has expanded from 5m tonne/year in 2003 to over 15m tonne/year in 2009, almost 90 percent of total global capacity expansion over […]
Beware The Motives of Optimists
By John Richardson IT is always useful to make a note of both what economists are saying and where they are coming from. To give you an example, I was at a conference last year when I heard a ridiculously rosy outlook for both emerging and developed economies, delivered by an economist working for a […]
Post merger Braskem talks of global growth through acquisitions
By Malini Hariharan After overcoming legal objections, Braskem took the final step late last week to announce the merger of the petrochemical operations of Petrobras, Odebrecht and Quattor, to create not only Brazil’s largest petrochemical company but also America’s largest polymer producer. The plan now is to develop the company to become one of the […]
China Latest Growth, Inflation Raise Rate Rise Fears
By John Richardson CHINA’S soaring fourth-quarter GDP (gross domestic product) growth – and the release of the latest inflation statistic – has heightened fears among economists that interest-rate rises will be necessary, risking collapse in house prices if it’s not managed skilfully. Inflation rose to 1.9% in December last year from 0.6% in November, according to […]
China Latest Credit Tightening Blow To Chemicals
By John Richardson CHINA’S decision to temporarily halt lending by some banks – which was announced yesterday – as it attempts to further cool the economy will likely have a significant effect on chemicals demand and pricing. This follows last week’s decision to raise bank reserve requirements and two increases in the inter-bank lending rate […]
Time for Reliance to make its next move
By Malini Hariharan Reliance’s bid to acquire LyondellBasell has taken an interesting turn after yesterday’s court ruling. The US bankruptcy court has allowed Lyondell Chemical, the US arm of LyondellBasell, time until 15 April to file a reorganisation plan. During that time, no other competing reorganisation plans can be filed with the court. “… With […]
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