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 […]
Asian Chemical Connections
China’s policy dilemma: raising local demand while protecting exports
By John Richardson IN THIS Western-centric world, a huge amount of ink is split over the consequences of US presidential elections and this year’s the poll, which as always takes place in November, is no exception. The result will of course have huge global economic and geopolitical consequences. But I believe that the outcomes […]
China: When Fake GDP Numbers Didn’t Really Matter
Do you need to be part of this discussion? Then join me for a free Webinar on 30 September. WE all like to be proved right, of course, as it gives us that warm feeling of satisfaction inside – that sense of approbation. And each us, even the most outwardly assured chemicals industry CEO, […]
China’s Three Measures Of Real Growth All Weaken
By John Richardson YOU have to again conclude from the above chart that the China so many thought they understood remains very, very different. The chart shows electricity consumption. Along with credit creation and rail-freight movements these are the three measures of real GDP growth that have been identified by China’s Prime Minister, Li Keqiang. […]
China’s Li Keqiang Pulls No Punches On The Challenges Ahead
By John Richardson Li Keqiang was short on detail during a major speech last week, said some analysts. This was taken as a sign that Beijing has become nervous about the pace of the economic slowdown, a theory supported by “policy backtracks” – for example, last month’s decision to lower interest rates for the second […]
Walking Away From Reality At Tianjin World Economic Forum
By John Richardson SOME of the world’s global business leaders don’t seem to get it. This is the only conclusion we can reach from their reported reaction to Li Keqiang’s opening speech at the World Economic Forum in Tianjin, China, yesterday. “Premier Li Keqiang failed to offer global business leaders any fresh solutions to the […]
China Faces Lower Growth In Q2
By John Richardson WE conducted another of our highly unscientific surveys amongst polyethylene (PE) producers and traders last week and the message remained the same: Persistently weaker-than-expected downstream demand in China. “Many downstream plastics processors have seen persistently weak orders for plastics finished and semi-finished goods,” added the commentary accompanying the ICIS pricing polypropylene (PP) […]
China’s 2014 GDP Growth Target
By John Richardson THE blog is scratching its head this morning as it tries to work out how China can have it both ways. Yesterday, Li Keqiang, China’s Premier, announced that the country’s 2014 GDP growth target would be 7.5%, whilst he also pledged to press ahead with economic reforms. But how can economic reforms […]
China MEG Market Points To Risks Ahead
By John Richardson SOMETHING very disturbing is going on in China’s mono-ethylene glycol markets (MEG), which, we, think, reflects the following: Failure to read the economic tea leaves. A sharp contraction in credit growth threatens to leave 2014 GDP growth a lot lower than many chemicals companies have forecast. The possible use of MEG as […]
Life After The “Sugar High”: Oil Prices And Petrochemicals
By John Richardson WHY is it that even though demand in the US for petrochemicals is still well below the 2007 peak, as indicated by the latest American Chemistry Council capacity utilisation chart, the November ICIS Petrochemical (IPEX) for the US shows pricing at such elevated levels? (see the charts below). “Never mind,” one might […]
Jump to page: