By John Richardson THE COMING COLLAPSE of China, as I’ve discussed is before, is like commercially viable nuclear fusion and peak oil – perpetually 10 years away. But what seems evident to me is that over the next six to 18 months, as China transitions to what I believe will be a successful new and […]
Asian Chemical Connections
China’s “Common prosperity” uncertainties multiply as we head into the unknown
By John Richardson DON’T SAY I didn’t warn you. This article in The Wall Street Journal confirms my warning that Xi Jinping’s “common prosperity” reforms would face resistance from vested interests. China’s president Xi is having to dial back plans for the introduction of widespread property taxes, according to WSJ. “China has experimented with a […]
China provides major climate hope as latest IEA report underlines that it is all about the developing world
By John Richardson WHEN I worked for a UK local newspaper as a “cub” or junior reporter in the 1980s, there was a major international air crash. “Find out if there was anyone from our city on the flight,” my news editor instructed me. In my naivete, and because of lack of training, I was […]
China’s less commodity intensive future requires major petchem strategic rethink
By John Richardson THE THING about the collapse of China is that, like commercially viable nuclear fusion and peak oil, it is always ten years away from happening. In other words, I don’t think it will happen. But as the journalist and author Richard McGregor said in this Dan Snow history podcast on this year’s […]
China pulls multiple policy levers to fix energy shortages but don’t forget secular fall in demand
By John Richardson Executive Summary CHINA’S POWER shortages could fixed by the end of this month or early November, I was told by a senior polyolefins industry source. Three other contacts concurred. My contacts could be wrong, of course. A coal trader quoted by Reuters said that the energy shortages could continue throughout the fourth […]
China petchem project cancellations on “common prosperity” may not mean higher imports
By John Richardson IT IS BEING suggested that China’s “common prosperity” policy pivot, the biggest event in the global economy since at least 2009, will lead to a slowdown in local petrochemicals capacity additions. Maybe. As we all know, our industry produces a lot of carbon emissions, and a key element of the policy pivot […]
China traditional Q4 petchems demand increase unlikely because of economic rebalancing
By John Richardson A NEW RESEARCH PAPER by economists Kenneth Rogoff and Yuanchen Yang underlines the scale of what is at stake for petrochemicals demand if China doesn’t blink and sticks to its deleveraging of the real estate sector. The authors found that 29% of the Chinese economy is dependent on the property sector when […]
China carbon limits and Evergrande tied together as short term growth challenges build
By John Richardson Executive summary THE LIKELIHOOD that 227,000 tonnes of China’s polyethylene (PE) and polypropylene (PP) coal-based capacity is forecast to be lost to plant shutdowns in September and October this year looks at first glance to be good news for exporters to China. This would be much higher than the 43,000 tonnes of […]
Challenges facing China as it tries to bridge the rural-urban wealth divide
By John Richardson THIS COULD be the biggest event in our industry since at least the Global Financial Crisis, possibly even earlier. Do not make the mistake of underestimating the importance of China’s policy shift to “common prosperity” in your planning process. I’ve already covered some of the short-term potential implications in my posts on […]
What global petchems demand would have been like without the China property bubble warns us about the future
By John Richardson PLAYING “What if?” games by changing the course of history is popular amongst students of the subject, including myself. Imagine, therefore, in our world of petrochemicals, if China hadn’t decided in late 2008 to launch the world’s biggest-ever economic stimulus package to compensate for the Global Financial Crisis. Beijing felt it had […]
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