Tag Archives | oil prices

PE margins turn negative as economic risks build

By John Richardson

CASH margins for Asian linear-low density polyethylene (LLDPE) for naphtha-based producers have turned negative for the first time since Q1 2015, according to an industry contact.

And this is of course before the flood of new US …

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Don’t Forget Turkey And Its Importance To Global Polyolefins

By John Richardson

YOU might well have forgotten the Turkish lira crisis because of the US/China trade war. But Turkey is crucial for the health of the global polyolefins business because of the size of its imports.

Before the US …

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Turkey Crisis: Implications For Polyolefins And Global Economy

By John Richardson

THE first ramification of the Turkey crisis is that the collapse of the lira raises questions over how Turkish importers will be able to afford the dollars to pay for some of the polyolefins imported since the …

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The Three Essential Oil Price, Economic Growth Scenarios For Petchems

By John Richardson

ALL the excitement over the positive impact of US tax cuts should be placed very firmly in this context from an early July Reuters article:

US budget analysts generally look at the impact of tax changes over …

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Why China Will Rapidly Become Paraxylene Self-Sufficient

By John Richardson

WOW, what an opportunity. That might be your reaction to the two above charts. On the left, you can see a quite breath taking rise in China’s paraxylene (PX) net imports (imports minus exports). In 2007, China’s …

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Plastic Waste Crisis Will Reverse Petchems Globalisation

By John Richardson

IT IS hardly surprising that a hot topic of discussion amongst chemical company CEOS gathered for the American Chemistry Council’s annual meeting in Colorado Springs, the US, was the threat of trade wars.

As I have long …

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China Plastics Recycling To Lead The World As Virgin Resin Demand Declines

By John Richardson

IT just isn’t logical. There is a lot of excitement in polyethylene (PE) markets about how China’s heavy restrictions on imports of scrap plastic will deliver a permanent boost to imports of virgin PE resins.

But plastic …

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China Overlooked Lending Data Down 64% As Economic Slowdown Continues

By John Richardson

FAR too little attention is still being paid to China’s lending data even though this has long been the key measure of whether its economy is accelerating or slowing down.

In January 2014, lending in China started …

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Polyethylene Margins Face Collapse On Overcapacity

By John Richardson

THE consensus view is that whilst global polyethylene (PE) margins have further to fall from their levels so far in 2018 (see the above chart), they will not get that much worse. It is thought that the …

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How Europe Can Move To Polyolefins Self-Sufficiency

By John Richardson

THE CONSENSUS assumption is that Europe will remain a major importer of polyolefins for the foreseeable future. Lack of feedstock advantage is said to be a reason why rising deficits will not be met by local production.…

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