European operating rates (OR%) for ethylene averaged just 82% in 2010, according to APPE data this week. This meant there was no improvement over H1 OR%, suggesting the recovery from 2009’s 76% OR% has stalled. Of course, in terms of profitability, 2010 will have been a great year. The industry did its usual excellent job […]
Chemicals and the Economy
Olefin ‘spreads’ remain volatile
Last March, the blog highlighted the major changes taking place in ethylene, propylene and butadiene prices versus naphtha. It also analysed them in ICIS Chemical Business in September. The above chart now summarises the 2010 outcome, using European prices to enable comparison over the last 30 years. It was a most remarkable year. The chart […]
Europe olefin operating rates remain at 82%
Q3 showed no real improvement in European cracker operating rates (OR%). As the chart shows, based on APPE data, these remained at 82% for the Q1 – Q3 period. Of course, this is much better than the 76% OR% seen in 2009, but it would not normally be a matter for celebration. However, the ‘silver […]
Asian polymer prices and margins begin to fall
A month ago, Nigel Davis called attention in his ICIS Insight column to the alarming fall taking place in US ethylene values. He noted that “inventories seem to have filled“, and presciently concluded that “buyers have been on the look-out for the turn and, by all accounts, expect any downward movement to be swift and […]
Cracker margins remain under pressure
The chart above, from Paul Ray’s excellent ‘ICIS Weekly Margin Report’, clearly shows the level of pain currently being suffered by naphtha-based cracker operators. Based on European pricing, it also demonstrates the great difference between today’s recession versus the ‘dip’ of 2002/3: • Margins based on contract prices fell to €151/t in January • They […]
Propylene/Ethylene ratio drops
Propylene prices have been relatively strong in recent years, compared to ethylene. As the chart shows, they averaged 90% of the ethylene price between 2003-8. Now, however, they have returned to the historical 70% – 85% range. Propylene’s recent strength was well founded: • Benzene prices rose in 2004, making PP more attractive versus PS […]
ExxonMobil weathers the storm
One can still rely on ExxonMobil to deliver positive results, even whilst the world is collapsing around them. Friday’s report showed Q4 chemical volumes down 20%, as a result of hurricane effects and destocking. But although earnings tumbled from $1.1bn in 2007, they were still in the black at $0.2bn.
10 European crackers offline
My colleague Bob Townsend is well known to many in the chemical industry as an olefins expert. He has pointed out today’s most unusual situation in olefins. Normally, an unplanned outage by one or more crackers would cause major disruption. Yet today, 10 European crackers are down, for technical or other reasons, and many others […]
China cuts back ethylene to boost fuel
Some minor relief may be at hand for hard-pressed cracker operators, particularly those in Asia. Sinopec announced today that it will reduce ethylene output by 65 KT in June (the equivalent of 1 cracker’s output), in order to allow it to boost fuel production by 200 KT. This will be done by bringing forward planned […]
BP and Reliance
BP and Reliance Industries are both powerhouses in their own fields. BP’s new CEO, Tony Hayward, has just given his first interview in the new job. Comparing, and contrasting, his comments with last week’s AGM statement by Reliance’s Chairman, Mukesh Ambani, is very revealing in terms of content as well as tone. Hayward’s interview in […]
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