By John Richardson ASIAN naphtha cracker operators have cut production in response to the exceptionally weak China market, according to ICIS. Yeochun Naphtha Cracker Centre (YNCC) has, for instance, lowered operating rates to 90 percent from 100 percent at its three crackers in Yeosu. South Korea, from the end of May. The total capacity of its […]
Asian Chemical Connections
Stimulus Nonsense Raises Hopes
By John Richardson EARNINGS estimates for South Korean petrochemical companies will have to be cut by 50 percent for the full year 2012, said an industry observer. “It is quite clear that the first quarter was dreadful for the South Koreans and the second quarter will probably be even worse,” he added. There was a […]
China PE Demand Falls Six Percent
By John Richardson The 6% decline in apparent polyethylene (PE) demand in China from January to April this year, compared with the same periods in 2011 and 2010, underlines what market participants have been telling the blog for many months. The above chart also further emphasises how, in a weak market, the Middle East is […]
The H2 Recovery Story
By John Richardson THE majority of chemicals analysts have yet to wake up and smell the coffee, according to an industry observer. “South Korean stocks have come off by 15-30% since their big recovery in January, but it is only the timing rather than the overall sentiment that has changed,” said the observer. “The theory […]
Chems Trade Finance Threat
By John Richardson NEW banking regulations could severely restrict the ability of small and medium-sized (SMEs) companies to access trade finance. This would hit Asia particularly hard, as the majority of chemicals and polymer business involves SMEs. Under the Basel III regulations, due to be phased in from next year, a three-month trade finance loan will […]
China Polyester Chain Weakens
By Malini Hariharan The polyester chain is feeling the strain of poor Chinese demand. Weak export demand and Chinese government policy are also impacting this sector, as is the case in polyolefins. A further factor behind the problems in the polyester chain is the fall in cotton prices, as fellow blogger Paul Hodges points out. Monoethylene […]
Turning The US Story On Its Head
By John Richardson THE big US petrochemicals story at the moment is, of course, shale gas and the potential it offers for the local industry to substantially expand capacity. This would, in theory, give producers a strong position to export to South America, Asia and Europe. Exports are going to be essential as the US market, […]
Butadiene Set To Decline Further
By Malini Hariharan The drama continues in the Asian butadiene market. Bids this week are about $100/tonne lower than sellers’ price ideas, writes Helen Yan in an ICIS news report. Buying indications have dropped to $3,350-3,400/tonne CFR Northeast Asia. Butadiene prices appear to be going through another downcycle, reflecting the fundamentals of a market that it […]
China Set To Gain The Most From Inland Boom
By John Richardson LAST week we discussed how inland markets in China – which are booming thanks to government efforts to raise rural income levels – offer huge opportunities for petrochemicals producers. Here are a few further reasons to believe that it will be local rather than overseas producers which benefit the most. Beijing […]
World Bank Highlights China Risks
By John Richardson A NEW report by the World Bank on China, summarised on the slide below, supports what we argued in chapter 6 our e-book, Boom, Gloom & The New Normal: That without the success of efforts to reform the economy, the country risks a significant slowdown. Those reform efforts, detailed in the […]
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