By John Richardson THE nature of demand in China is changing, despite the belief among some chemicals analysts, and companies, that everything will soon return to normal. Here is a summary of our key arguments. Please print off and pin to your office, or boardroom, wall for discussion – and let us know if you […]
Asian Chemical Connections
The H2 Recovery Story
By John Richardson THE majority of chemicals analysts have yet to wake up and smell the coffee, according to an industry observer. “South Korean stocks have come off by 15-30% since their big recovery in January, but it is only the timing rather than the overall sentiment that has changed,” said the observer. “The theory […]
US Euphoria
By John Richardson THE shale gas advantage, along with the revival of the US economy, made for a euphoric atmosphere at last week’s International Petrochemicals Conference (IPC)* in San Antonio, Texas. China was only a blip on the corner of the radar screen because the talk was so domestic-focused. The only doubts expressed were over […]
Foxconn And Chemicals
By John Richardson THE recent investigation by the US-based Fair Labor Association into Foxconn is a further indication of how China is transforming its economic model. It was found that Foxconn breached several Chinese regulations, including a maximum working week of 49 hours. The company is China’s biggest private-sector employer and manufactures 40 percent of […]
China’s March Inflation
By John Richardson THE importance of reliable market intelligence on China was further emphasised on Monday with the release of the March inflation data. Last week a sales and marketing executive with a polyolefins producer told us: “”Although the overall inflation rate has fallen to 3.2 percent (the February number), this is very misleading as it […]
MEG’s Fading Star
By John Richardson CHINA’S mono-ethylene (MEG) market was supposed to be very strong this year. But instead, to date we have seen persistently weak market conditions that few people, least of all the traders, seem to have anticipated. The traders appear to have been taken in by the hype and booked cargoes for delivery […]
Wen’s Last Reform Push
By John Richardson Wen Jiabao has been at it again. His extraordinarily strong comments on Tuesday follow those he made last month about the risks of a return to the economic chaos of the Cultural Revolution. On this latest occasion, he has taken aim at the state-owned banks. China’s premier, who is to relinquish power […]
Further China Evidence
By John Richardson FURTHER evidence of weakness in the Chinese economy has emerged via the polyolefins market. In an excellent Insight article, my ICIS colleagues Chow Bee Lin and Peh Soo Hwee say that China’s plastics processors are resisting additional price increases because their customers, the manufacturers of finished goods, are struggling. The combined retail […]
China And Inflation
By John Richardson MUCH excitement heralded the announcement that February inflation in China had fallen to a 20-month low of 3.2 percent – well within the government’s annualised target of 4 percent. This led to the belief that the government would boost bank lending, and maybe further low bank-reserve requirements and interest rates. No doubt this […]
The CEO’s Dilemma
By John Richardson The blog has, in its naivety, for some time been perplexed over why certain chemicals company CEOs portray a relentlessly optimistic picture of developing-markets growth. This is despite all the evidence pointing to increasing uncertainties over how China, India, and other developing economies are going to progress over the next decade. Last […]
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