Source of picture: Rex Features Today, we are running a guest blog post from Brian Spero,who is a financial contributor for the online resource, Money Crashers Personal Finance, where he writes about economic policy, real estate, and home improvement. As the chemical industry keeps a watchful eye out for tangible proof of an improving […]
Asian Chemical Connections
Low Equity Volumes Tell The Real Story
By John Richardson The above chart is the most important indicator about why the current rally in equity markets is at high risk of a sharp correction. Volumes in European markets (the blue line) and US markets (the red line) are significantly below levels in 2006-2012. High volumes are always a bullish indicator as it means […]
China SMEs Under More Strain
Source of picture: Rex Features By John Richardson WE are worried that the recovery in Asia’s chemicals and polymer markets may not be sustained. One of our biggest concerns is that China’s small and medium-sized enterprises (SMEs), which make up 60% of the economy and are responsible for 80% of employment, are under more […]
China SMEs Under More Strain
Source of picture: Rex Features By John Richardson WE are worried that the recovery in Asia’s chemicals and polymer markets may not be sustained. One of our biggest concerns is that China’s small and medium-sized enterprises (SMEs), which make up 60% of the economy and are responsible for 80% of employment, are under more […]
China Credit, Commodities Bubble
By John Richardson China announced last week that its state-owned banks had lent Rmb1.07 trillion ($172m) in January, which was more than double the amount in December. Financial markets have taken as evidence that the economic recovery has gained momentum. But when you combine January-February lending for 2012 in order to get rid of the […]
US LNG Projects Up In The Air
By John Richardson THE US petrochemicals industry is battling hard to block an explosion in liquefied natural gas (LNG) investments that they fear would result in a rise in ethane, propane and butane feedstock costs. Andrew Liveris, CEO of Dow Chemical, raised this issue in December, but the pressure from the industry on legislators responsible […]
China’s PE Cycle Repeats Itself
By John Richardson THE above chart shows that China’s polyethylene (PE) demand growth has been well below that of overall GDP for most of the years between 2006 and 2012. This supports the argument that economic growth has been too heavily focused on investment rather than consumption, given that the majority of PE goes into […]
US Shale Row Flares UP
Sorry for the corny headline; we couldn’t resist it. By John Richardson THE argument that the switch to natural gas from coal and oil is good for the environment has been further undermined by reports earlier this week of the big increase in the amount of gas-flaring in the US. When the blog visited […]
Beware Of Excessive Optimism
By John Richardson CHEMICALS and polymer markets have enjoyed a very strong recovery in Asia since November/December, according to many of the traders we have spoken to. “We are getting $150-200/tonne more for benzene and toluene in January compared with early November. There has been a strong recovery in confidences,” said a Dubai-based trader. […]
PTA Price Decline Reflects Realities
By John Richardson The end of the eight-week long bull-run in China’s purified terephthalic acid (PTA) pricing might well indicate a wider problem about to beset other petrochemicals: Reality undermining the positive sentiment of the early part of this year. “PTA prices surged by 10% from early November to early January, mainly led by a […]
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