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Asian Chemical Connections

Northeast Asia Confronts PVC Consolidation

By John Richardson ASIAN higher cost polyvinyl chloride (PVC) producers are facing the twin squeeze of increased electricity costs and very competitive exports from the US, according to an industry source the blog met with in Taipei, ahead of tomorrow and Friday’s 2013 Asia Petrochemical Industry Conference (APIC). Such is the pressure on the Japanese, […]

Social Change And Growth

South Korea and its consumer-driven economy Source of picture:  KeystoneUSA-ZUMA/Rex Features   By John Richardson MEASURING demand growth cannot involve merely assuming that the future will be the same as the past, as this increasingly complex world continues to tell us. There are a myriad of social, political and environmental factors that will determine the […]

Middle East-China MEG Exports Surge

By John Richardson MONO-ETHYLENE glycol (MEG) exports to China rose to 4.12m tonnes in the first half of this year from 3.38m tonnes during the same period in 2011, according to data from Global Trade Information Services (GTIS). The main beneficiary of the export surge was the Middle East as H1 2012 exports from Kuwait […]

South Korea “Denial” Continues

  By John Richardson EARNINGS estimates for South Korean petrochemicals companies for the full-year 2012 remain around 30 percent above where they should be because “most financial analysts remain in denial“, said an industry source. A sign of how bad the times have become was that LG Chem’s Q2 results, which were released last week, […]

KPMG Warns Of US Overcapacity

  By John Richardson A management consultancy has gone on the record to warn about what the blog has been warning about for months: That the US petrochemicals industry is in danger of pushing itself into oversupply. KPMG, in a report released late last month, said that the success of planned US expansions, including as […]

Northeast Asia PE Weakest Margins

  Source: ICIS pricing Weekly Asian PE Margin Report   By John Richardson The slide above shows how Northeast Asian naphtha-based polyethylene (PE) producers are struggling as a result of the weak China market (dark blue bars). And it confirms what we were discussing yesterday: The US, with its ethane advantage and with reportedly high […]

Asian Operating Cuts Not Enough

By John Richardson ASIAN naphtha cracker operators have cut production in response to the exceptionally weak China market, according to ICIS. Yeochun Naphtha Cracker Centre (YNCC) has, for instance, lowered operating rates to 90 percent from 100 percent at its three crackers in Yeosu. South Korea, from the end of May. The total capacity of its […]

Stimulus Nonsense Raises Hopes

By John Richardson EARNINGS estimates for South Korean petrochemical companies will have to be cut by 50 percent for the full year 2012, said an industry observer. “It is quite clear that the first quarter was dreadful for the South Koreans and the second quarter will probably be even worse,” he added. There was a […]

China Polyester Chain Weakens

By Malini Hariharan The polyester chain is feeling the strain of poor Chinese demand. Weak export demand and Chinese government policy are also impacting this sector, as is the case in polyolefins. A further factor behind the problems in the polyester chain is the fall in cotton prices, as fellow blogger Paul Hodges points out. Monoethylene […]

Turning The US Story On Its Head

By John Richardson THE big US petrochemicals story at the moment is, of course, shale gas and the potential it offers for the local industry to substantially expand capacity. This would, in theory, give producers a strong position to export to South America, Asia and Europe. Exports are going to be essential as the US market, […]

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