US PE contract pricesBy John Richardson THE American Chemistry Council’s Mid-Year Situation and Outlook Report, which was released this week, helps explain the background to the weakness in demand seen in the US polyethylene (PE) market. What goes for PE will, of course, apply to the rest of the US petrochemicals business. In the case […]
Asian Chemical Connections
China Jan-May PE Demand Declines
By John Richardson THE chart above, from data provided by Global Trade Information Services, further confirms that all hope of any substantial growth in China’s commodity grade polyethylene (PE) market during 2012 needs to be given up. Companies, and chemicals investors, should further revise their expectations. The five percent decline in apparent demand growth (imports plus […]
US Targets China VAT Rebates
Mitt Romney would declare China a currency manipulator Source of picture: Wikimeda By John Richardson China’s practice of providing value-added tax (VAT) rebates for importers of raw materials who then re-export finished goods is the subject of a new US Department of Commerce ruling. And a leading international trade lawyer […]
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 […]
US-China Trade Disputes Threat
By John Richardson CHINA’S 15.3 percent increase in exports in May, far greater than most analysts had expected, is being interpreted as a sign of the country’s enduring economic strength. This is certainly good news for China amidst all the other negative news. But to what extent is it good news for the US, the […]
Fibre Intermediates In Panic
By John Richardson A SENSE of panic has gripped the fibre intermediates chain as a result of falling crude oil prices, an industry observer told the blog. “Nobody knows where the bottom of the market will be, which, to me, feels a great deal like the crisis in late 2008,” he said, “Prices are in […]
A Call To Action
We are about to set out on a great journey as the world transitions to the New Normal. The reason for the journey is that the world economy has changed irrevocably as a result of the financial crisis and the demand changes created by the ageing of the Western BabyBoomers. There is no going back. […]
Chem Companies Face Funding Crisis
By John Richardson A collapse in the price of oil would expose petrochemicals producers, buyers and traders who have built- up stocks. They built up inventories because oil was on the way up earlier this year. And they were also encouraged to stock-up because of more confidence over the Eurozone, relative to Q4 last […]
Global Economy Loses Suspension
By John Richardson ISN’T it interesting how when you talk to someone involved in a petrochemicals project, either publicly or privately, their project is very often sufficiently to the left of the cost curve to gain a winning advantage over competitors? Discussions are almost entirely about feedstock advantage, production and logistics efficiency and location etc. Thus was […]
China PE Demand Falls Six Percent
By John Richardson The 6% decline in apparent polyethylene (PE) demand in China from January to April this year, compared with the same periods in 2011 and 2010, underlines what market participants have been telling the blog for many months. The above chart also further emphasises how, in a weak market, the Middle East is […]
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