Tag Archives | US shale gas

The Battle To Retain Metallocene Polyethylene Price Premiums

By John Richardson

THE ABOVE chart could be a sign of a long term trend where we see metallocene linear-low density polyethylene (LLDPE) price premiums over standard, or C4 grade, LLDPE film at lower levels.

We have already seen C6 …

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Asian Naphtha Cracker Spreads To Fall By 50% In 2018

By John Richardson

ASIAN naphtha cracker operators will see a 50% decline in average spreads, or differentials, between their raw-material costs and finished product prices in 2018 compared with last year, according to my forecasts in the above chart. This …

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Struggling Polyethylene In 2018, Strong Profits Elsewhere

By John Richardson

THERE will perhaps be two headline directions for the global chemicals and polymers industries in 2018:

I believe that the global polyethylene (PE) market has a very good chance of moving from last year’s peak margins to…
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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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Cheap Oil Raises Naphtha Cracker Over Investment Risk

By John Richardson

THE ABOVE chart shows that from January 2015 up until November of this year, the Asian naphtha cracker industry has been making a great deal of money.

The orange bars are the premiums in percentage terms between …

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Crude Drives Asian Polyethylene Spreads To Three-Year Low As 2018 Risks Build

By John Richardson

IN MARCH 2016 we gave three scenarios for crude-oil prices:

Collapsing Demand where we saw crude falling to $25/bbl on weak global demand that would make it impossible to repay much of the huge debts that had…
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China To Now Raise Ethylene Capacity By 84% As Self-Sufficiency Drive Accelerates

By John Richardson

SINCE my last update on 18 September, our ICIS China team have discovered a further 2.4m tonnes/year of ethylene capacity being planned in China via the steam cracker process (see the updated table above, with the changes …

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China Moves Towards Commodity Grade PE Self-Sufficiency By 2025

By John Richardson

THE argument I’ve been making for a couple of years now is that the history of petrochemicals in China suggests a constant drive towards much greater self-sufficiency. No value chain is immune, I have kept contending.

The …

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US Oil, Gas, Chemicals Drowning In Excess Of Credit

By John Richardson

THE US oil, gas and petrochemicals sectors are drowning in an excess of credit that has distorted rational analysis of long-term supply and demand fundamentals.

So, just as is the case with China manufacturing in general, these …

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Finding A Home For US Polyethylene Expansions

By John Richardson

EVEN if you take a benign view of the future of the US economy (which, separately, we think is the wrong view), the planned increases in US polyethylene (PE) capacity still raise this very important question: Where …

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