The second of our series of blog posts on China’s economic challenges over the next 12-18 months focuses on deflation. By John Richardson DEFLATION has now become a major concern for the Chinese economy following the release of official data earlier this week that showed a 2.1 percent decline in producer prices in June […]
Asian Chemical Connections
Dictating Chemicals Demand
By John Richardson SOME commodity chemicals companies still assume that, if they build new supply, demand will always eventually catch up with supply. The risks of not building new capacities, at times of easy financing and feedstock availability, are also viewed as too great. These include deteriorating economies of scale and loss of […]
US Polyethylene Targets China
By John Richardson SIGNIFICANT volumes of US polyethylene (PE) are heading to China as the States attempts to compensate for weaker domestic sales, understands the blog. Despite the fall in US prices, margins remain strong, creating arbitrage opportunities. US May contracts for polyethylene (PE) settled down by 7 cents/lb ($154/tonne, €125/tonne) from April, following […]
Global Polymers Demand Up 4.5% In 2011
By Malini Hariharan Despite challenging market conditions in 2011, the global polymers industry managed to post demand growth of 4.5%, with the largest increase recorded by polyvinyl chloride (PVC) at 6.2% and linear-low density polyethylene (LLDPE) at 5.8%, estimates Fabrizio Galie of the ICIS consulting team. Global demand for commodity polymers, including PE, polypropylene (PP), […]
Butadiene Set To Decline Further
By Malini Hariharan The drama continues in the Asian butadiene market. Bids this week are about $100/tonne lower than sellers’ price ideas, writes Helen Yan in an ICIS news report. Buying indications have dropped to $3,350-3,400/tonne CFR Northeast Asia. Butadiene prices appear to be going through another downcycle, reflecting the fundamentals of a market that it […]
Honam’s next expansion
By Malini Hariharan Honam Petrochemical’s plans for Indonesia appear to be progressing. Company sources told ICIS news yesterday that a feasibility study is underway for a $4-5bn petrochemical complex in Southeast Asia with Indonesia the most likely location. The study is likely to be completed by early 2013. Meanwhile, Indonesia media quoted senior managing director […]
An All Mighty Dalian Muddle
By John Richardson UNDERSTANDING the Dalian Commodity Exchange’s futures contract in RMB-priced linear low-density polyethylene ((LLDPE) requires an understanding of what the traders are up to at any particular point in time, as this is almost entirely a speculators’ market. So, what happened late last year is very illuminating. The chart below shows a sharp spike […]
Power outage hits Al-Jubail plants
By Malini Hariharan A power outage at Al-Jubail has forced crackers and downstream plants at Al-Jubail, Saudi Arabia, to shut down. ICIS news reports that all polyethylene (PE) and polypropylene (PP) plants at the site were shut yesterday. It is not yet clear which other derivative plants were affected. LyondellBasell has temporarily withdrawn its February […]
America’s New Political Era
What follows is likely to be of little interest to those, like ourselves, who are obsessed by the week-by-week price of polyethylene (PE). But a strong US economy is essential for a healthy global chemicals industry, and what is being attempted right now to revive America doesn’t appear to be working. Happy New Year to […]
Placing Faith In Politicians
By John Richardson THE public mood of last week’s Gulf Petrochemicals and Chemicals Association (GPCA) conference in Dubai was resolutely optimistic. But in the corridors, the dining rooms and the coffee bars of the conference hotel, the mood was radically different. Taking, as usual, the polyethylene (PE) business as a reasonable proxy for the polymers […]
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