In November 2021, the premium for overseas PP injection grade prices over prices in China reached a historic peak of $408/tonne. But in 1-18 November 2022, the premium was $113/tonne. Premiums have fallen in every month since April this year, resulting in a decline in China exports.
Asian Chemical Connections
Little prospect of China recovery in 2023 as zero-COVID, property downturn set to continue
CFR China PP injection grade price spreads over CFR Japan naphtha costs averaged $546/tonne in 2003-2021 compared wit $251/tonne so far this year – a 118% difference. When you consider China’s economic fundamentals, it is unrealistic to expect a recovery to the long-term historic average in 2023.
Why European chemicals can emerge from this crisis as a winner
IT REALLY ISN’T doom and gloom if you take the longer-term view. Instead, for the chemical companies with the right strategies, the opportunities to build new sustainable business models are huge. The winners will make an awful lot of money while also doing the right things for humanity and our natural environment.
China’s real estate rescue and zero-COVID tinkering will make little difference
China’s real estate rescue only involves shoring-up lenders. The property bubble will not and cannot be reflated. Most of the zero-COVID rules remain in place, and will likely stay in place well into 2023
China HDPE: 2023 demand and net import outlook
China’s HDPE in demand in 2023 could fall by as much as 4% over 2022. Next year’s net imports may slip to as low as 3.8m tonnes from around 5.7m tonnes in 2022.
China naphtha-to-polyolefins spreads data still show recovery yet to happen
RECOVERY? WHAT RECOVERY? Some market players are talking about a rebound in the Chinese economy, and, therefore, polyolefins demand, but the critically important spreads data continue to tell a different story. Nothing has changed from last week.
Europe HDPE: why net imports could be 3m tonnes higher this year
EUROPE’S NET HDPE imports could be as high as 4.1m tonnes in 2022 versus last year’s 1.1m tonnes.
New global LLDPE demand scenarios in the context of Ukraine-Russia
How on earth does one respond to the daily news flow? The answer must be headline scenarios – best, – medium and worst-case scenarios
Ukraine-Russia: how the crisis could reshape petrochemicals demand
I hope what follows helps as a first pass at describing the new environment in which our industry is operating as a result of the Ukraine-Russia conflict.
China’s HDPE market in 2022 will be a litmus test of how well Beijing can manage unprecedented challenges
By John Richardson CHINA’S INCREASING self-sufficiency in high-density polyethylene (HDPE), combined with the potential for slower economic growth, is a developing story which is obviously being overshadowed by Ukraine. But China’s decisions on operating rates – as much political as economic –- and on whether its sticks hard and fast to Common Prosperity reforms in […]
Jump to page: