By Malini Hariharan and John Richardson The spread between high-density polyethylene (HDPE) film grade and linear-low density PE (LLDPE) prices in Asia has steadily widened over the last five months to hit a high of $110/tonne, raising questions on how long this can continue. LLDPE has been consistently cheaper than HDPE since May, a reversal […]
Asian Chemical Connections
Propylene To Stay Expensive
By John Richardson A DEBATE is taking place over whether the price of propylene will decline to its traditional discount versus ethylene. In Europe, propylene prices went above ethylene for the first time ever during the second quarter of 2010. Since 2001, the price differential of ethylene over propylene had steadily eroded until it reversed […]
China Tries To Transform Itself
By John Richardson CAN China succeed in transforming its economy from one which is over-reliant on exports to one where domestic consumption is a much bigger driver of growth? And how long will this process take and in the interim, can we expect a few years of lower GDP (gross domestic product) growth? As delegates […]
China looks for LPG
By Malini Hariharan The blog has been trying to get more information on what’s driving Chinese interest in liquefied petroleum gas (LPG)-based petrochemical projects. Plans for eight propane dehydrogenation (PDH) plants have already been announced and more could be in the pipeline as Chinese companies believe the country’s propylene deficit will expand in the coming […]
Is China getting serious?
By Malini Hariharan The Chinese government’s position on environmental safety has always been difficult to read. The official position for the last few years has been to reduce pollution by closing down old factories and forcing companies to invest in new technologies. But implementation has been sketchy as other priorities such as preserving jobs or […]
Speculation Drives China Methanol
By Malini Hariharan Methanol continues to be an exception to the general weakness seen in Asian petrochemical markets. Spot prices have crossed $410/tonne in the important China market and could remain firm for the rest of the year. Prices have risen by 11% in the last month. Chinese speculators have been driving up prices as […]
PDH spreads in China
By Malini Hariharan After methanol-to-propylene (MTP), Chinese companies are racing to build propane dehydrogenation (PDH) plants with eight new projects announced over the last three months. The blog estimates that PDH projects with a total propylene capacity of 4.6m tonnes/year have been planned for completion in 2013-14 (a full list is available here China PDH […]
MEG bucks the trend
By Malini Hariharan There are some exceptions to the generally weak petrochemical markets seen in Asia these days and monoethylene glycol (MEG) is one such product. Spot prices have hit a 44-month high of $1,275-1,280/tonne CFR China and are expected to soon cross $1,300/tonne, close to levels last seen in January 2008, reports Judith Wang, […]
Last chance for Taiwan petchems
By Malini Hariharan The Taiwanese government is once again talking of removing a ban on cracker investments by Taiwanese companies on the mainland. The country’s minister of economic affairs said late last week that the government is willing to consider lifting the ban provided certain conditions are met. Taiwanese companies must have a controlling stake […]
Rocky road ahead
By Malini Hariharan Asian polyolefin producers confront yet another challenging week. The macro environment suggests that implementing price hikes for September cargoes will be difficult. Stock markets around the world continue to be jittery with concerns about a US recession and debt problems in Europe still in the forefront. Support from oil also appears uncertain. […]
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