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Chemical Connections

Logistics will signal pathway to market normalisation

Prices precipitously falling from their highs after months of feverous run-up is typical commodity market behaviour, but the conditions in which the current moves are occurring remain unusual. While indexes in the three major IPEX regions fell, the yawning gap between them remains atypically wide with little indication of towards deviating back to the historical norm.

Immense challenges facing chemical, polymer procurers

Mid-February’s prolonged freeze on the Texas-Louisiana coast has juiced up market commentary as much as it has most petrochemical and polymer pricing. Just days after the storm, a polyethylene (PE) trader said that the freeze’s effects on regional and global supplies would be “worse than Hurricane Harvey”. Perhaps so, because not long after, a PE […]

Short supply means high demand, right? Not always

Why the supply chain needs to sometimes look beyond simple supply-demand models to understand chemical markets Understanding why a particular chemical market is behaving in a certain way sometimes requires some sleuthing. For example, when you see headlines such as this on ICIS News, one naturally thinks they have found a market experiencing high demand […]

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