Tag Archives | the Fed

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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Bursting of the US debt bubble and effect on petchems

By John Richardson

THE US economy is in a debt-induced bubble that will sooner or later burst with of course major negative consequences for the rest of the world.

You cannot print babies. The huge amounts of money that the …

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US LLDPE exports to Europe to increase by at least 70% in 2019

By John Richardson

ON MONDAY I took the percentage shares of total US linear-low density polyethylene (LLDPE) exports in 2017 country by country and on this basis modelled what could happen in 2019.

We are next year due to see …

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US LLDPE needs 68% export growth next year to top five markets…..

…..and that’s assuming there is no trade war with China!

By John Richardson

THE MORE you dig into the data the more it seems that the US might struggle to find a comfortable home for all of its new polyethylene …

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Asian Polyolefins Profits To Test 2012 Lows As Global Economy Slows

By John Richardson

PETROCHEMICALS are a great barometer for economic growth as they are the raw materials for so many finished goods. So, if petrochemicals producers see their profits slip, this provides an early signal that something is wrong with …

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US Stock Market Decline Highlights Consumer Spending, Income And Debt Risks

By John Richardson

THE SUSTAINABILITY of the US economic recovery rests on the willingness of people who cannot afford to spend money to continue to spend money.

In order to explain what I mean, let’s start with income and wealth …

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Asian Naphtha-PE Spreads Collapse By 80% As 2018 Challenges Build

By John Richardson

ASIAN naphtha-to-polyethylene (PE) spreads collapsed by 80% in the first week of January compared with December last year because of the failure to pass on the rise in naphtha feedstock costs resulting from higher oil prices.

In …

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Global Economy In 2018: Stimulus Withdrawal Threatens Complacent Outlook

By John Richardson

IN TODAY’S world of soar-away stock markets backed up by the notion that the sustained global economic recovery will not be derailed in 2018, there is a need to detail the major risks out there.

Today’s post …

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Stock Market Threats Far Wider Than Just North Korea

By John Richardson

LAST WEEK’S steep fall in global stock markets was of course the result of rising US-North Korea geopolitical tensions. Some $1 trillion was wiped off equity values. We obviously all hope that the geopolitical tensions will ease.…

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