Source of Picture: ChinaMonthlyReview.Org Polyester operating rates in China have started to rise on anticipation that the global economic recovery has arrived, according to Leonard DeGuzman, chemicals consultant with DeWitt & Co. Is this another example of a dangerous price bubble or further proof that we are really emerging from the woods? “The impact of […]
Asian Chemical Connections
What I Want To Know in H2 – Part Two
Garbage out, garbage in Source of Picture: The Daily Telegraph Here goes for the second part of this series. Is there anybody out there who can help? How will the ongoing availability of recycled material affect the pricing power of virgin resins? (We have the data to show that imports of scrap polyethylene (PE) and […]
Excessive Confidence A Risk
Confidence along all the chemicals value chains is always a key issue because of the ability to aggressively manage inventories, according to the London-based chemicals analyst Paul Satchell. So there’s the ever-present risk of sudden and very disruptive de-stocking. The longer the current rallies in commodity prices and stock markets continue, the greater might be […]
Reports of the death of US PP exaggerated
“Reports of my death are greatly exaggerated,” Mark Twain once famously said after his obituary was published before he had died. Similarly, the US polypropylene (PP) industry had been virtually written off late last year after a calamitous collapse in pricing resulted in inventory losses totalling a staggering $700m in November alone. But the day […]
PTA futures growing in influence?
Source of picture: 1st-commoditytrading.us It’s only one comment from one consultant, but this is what he said today about the growing role of the Zhenghou Commodity Exchange‘s purified terephthalic acid (PTA) futures contract. “PTA futures have been exerting a huge impact on spot pricing starting 2H July. “We haven’t seen any increase in physical demand […]
Building A Society With A Soul
What would would the great man have thought? Source of picture: Newham Council, the UK Four of the things my dear late father taught me were: *Never vote for the British Conservative Party *Never cross a picket line *Always pursue your dreams *Keep believing in the common good of humanity in the face of all […]
Can what made the US sick make China well?
It seems ironic that in the crazy scramble to protect itself from the consequences of the US collapse of the US debt-growth model, China has headed down the same path. As my fellow blogger Paul Hodges pointed out last Friday, official concerns over the bubbles in equity and property markets are increasing. Zhang Jianguo, president […]
Calling all CFOs: Ready To Take The Plunge?
Source of picture: oxo.typepad.com Leaving China aside for a change – where the speculative frenzy continues apace -Paul Satchell, chemicals analyst, has a four-step measure for assessing whether the US and Europe are really out of the woods. “Purchasing behaviour is strongly influenced by a customer’s confidence, and, in the current context, four distinct phases […]
Dalian: A Whole New Ball Game?
Source of picture: waittilnextcentury.blogspot Back to an old theme, the Dalian Commodity Exchange, this story from ICIS news talks of how physical cargoes are being bought and then sold at a price fixed now for November delivery. At the time of writing this was realising a $169/tonne profit. This could be old news, but I […]
China’s commodity stockpile gamble
Source of Picture: Australiannews.com In this article in the South China Morning Post (you can register for free for 14 days if you are not already a subscriber) Michael Pettis makes the argument that China is taking a big risk by stockpiling commodites such as iron ore, copper and oil. Inventory building is on the […]
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