By John Richardson SHELL Chemicals put an argument forward last week that polystyrene (PS) had regained ground from polypropylene (PP) as a result of expensive propylene. And the petrochemicals major forecast a bright future for both PS and expandable polystyrene (EPS). The blog pretty much always enjoys playing the devil’s advocate and so later on […]
Asian Chemical Connections
Europe Not Clutching At Straws
By John Richardson EUROPEAN ethylene and polyethylene (PE) market participants seem a million miles away from buying into the idea that the recovery in Asia is sustainable. This is a realistic view following last week’s interest rate rise in China, the fifth in eight months – and with the announcement over the weekend that inflation in June […]
Living In Hope Rather Than Expectation
By John Richardson HOPEFUL theories espoused by traders can sometimes sound a little hollow – as was the case with the one doing the rounds in Asian polyolefin markets late last week. “We think the latest interest rate rise in China will be the last this year and so, in a way, the announcement was good […]
China Auto Market Provides Clear Evidence
By John Richardson DESTOCKING is obviously not the main driver of the decline in China’s polyolefins market, despite what a dwindling band of optimists are still arguing. The glaringly transparent reason for the fallacy of the fading belief is a decline in key end-use markets for polyoleifins – and for other polymers and chemicals. Today […]
US Olefins, Polyolefins In Denial
By John Richardson THE majority of financial analysts seem to be clinging on to the hope that the recovery in petrochemicals demand from China is about to happen. This doesn’t just apply to our industry. Analysts across many sectors appear to have staked their reputations on a return to the Old Normal of booming […]
Misplaced Faith In China Recovery
By John Richardson WEAKER domestic consumption-growth in China represents a major challenge to the argument that global petrochemicals demand, and therefore pricing, will see a strong recovery during 2011. Price declines continued last week with low-density polyethylene (LDPE) down a further $20-50/tonne as the polymer, as we have reported before, continues to be dogged by […]
Ethylene And PE Markets Decline Continues
By John Richardson THE decline in Asian and European ethylene and polyethylene (PE) markets continued last week with no sign of the recovery that producers still hope will take place by end-June at the latest. Asian ethylene prices slipped by a further $60-70/tonne to $1,130-1,170/tonne FOB Korea to reach a six-month low, according to our […]
Saudi Crackers Could Soon Be At 100%
By John Richardson SAUDI ARABIA’S crackers could soon be running at operating rates of 100% again following widespread reports quoting the al-Hayat newspaper that the country’s crude production is set to rise to 10m barrels a day in July. Al-Hayat, a Saudi newspaper, is seen as a reliable indicator of government intentions. We reported last week how […]
Saudi Petchem Output Increase
By John Richardson YESTERDAY’S fractious OPEC meeting – where members were unable to agree on a proposal by the four biggest members to raise output – may not necessarily be good news for petrochemicals. For a long time the industry has worried about Saudi Arabia’s potential to raise crude output from approximately 8.5m barrels a […]
China Polyolefin Demand Growth Flat In 2011
By John Richardson POLYOLEFINS demand growth in China is likely to be flat in 2011 over last year, a senior industry executive and a consultant have told us. “I am quite pessimistic and don’t see the Chinese government winning the battle to bring inflation below 4% during this year (its target) and so the credit restrictions […]
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