In November 2021, the premium for overseas PP injection grade prices over prices in China reached a historic peak of $408/tonne. But in 1-18 November 2022, the premium was $113/tonne. Premiums have fallen in every month since April this year, resulting in a decline in China exports.
Asian Chemical Connections
Asia and Middle East PP producers need to be more global because markets are more regional!
By John Richardson NORTHEAST ASIAN (NEA) polypropylene (PP) producers are finding it increasingly difficult to export cargoes outside their region because of ample supply elsewhere and buyers’ reluctance to accept long delivery times. Freight costs have also spiked over the recent weeks, but container freight costs still seem workable on some routes. But when you […]
Trade War: 88m tonnes of lost polymers demand despite the boom in Asia ex-China
By John Richardson SURE, there are tremendous opportunities for petrochemicals and polymers companies in booming Southeast (SEA) Asia and South Asia as manufacturing chains relocate from China. Demographics are economic destiny. This is a process that has been taking place for at least ten years as Chinese labour costs rise on an ageing population whereas […]
Vietnam PE demand booms on trade war, but for how much longer?
By John Richardson GLOBAL manufacturing supply chains are adjusting to the US tariffs against China, accelerating a process that began a decade or so ago because of China’s ageing population versus more youthful populations elsewhere. Let’s use Vietnam as an example to first of all examine the longer term drift away from China. Since 2010, […]
Holding petchem CEOs to account: tackling societal needs the route to success
By John Richardson IF WE all had a dollar for every time we’d heard the phrase, “the growth of the Asian middle classes”, as just about the only justification by CEOs for petrochemicals and polymers investments, then the Principality of Monaco would by a very crowded place. There wouldn’t be enough room in the harbour […]
Regional Trading Blocs: Globalisation In Reverse
By John Richardson HAS anyone out there considered the possibility that we could end up with a series of regional trading blocs as globalisation goes into rapid reverse? Or have chemicals companies instead come up with one-dimensional outlooks that assume the world will become more, rather than less, open, thus making it easy to shift […]
India polymer exports to Pakistan set to rise
By Malini Hariharan After years of waiting truck movement of petrochemicals from India to Pakistan has started paving the way for Indian companies to boost their exports. Indian Oil Corp (IOC), which regularly exports polyethylene (PE) and polypropylene (PP) by rail to Pakistan, successfully sent its first consignment to Lahore last week from its petrochemical […]
Cotton corrects; will polyester follow?
By Malini Hariharan After last year’s stunning rise, cotton prices have plunged 53% in the last four months from a 140-year peak of $2.15/lb on 4 March. Prices have fallen 38% in July with cotton for December delivery quoted at 98.63 cents/lb on the Intercontinental Exchange. The swift correction in prices is based on expected […]
Letting supply lead the way
By Malini Hariharan Conventional wisdom suggests that it is best to build a plant where the market is. But can ready availability of material develop markets. Take the case of India. In an interesting presentation at India Chem last week, Mathew George of Indian Oil Corp (IOC), pointed that each of the top five polymer […]