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, […]
Asian Chemical Connections
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 […]
PE Margins Lowest On Record
By John Richardson ANOTHER week has gone by with no evidence of significantly stronger polyethylene (PE) volumes in China. Rising labour costs, because of mandated government increases in minimum wages, and the shortages of labour post-Lunar New Year, are still making it difficult for plastic converters to run at full capacity. The recovery in pricing […]
China Coal-to-Chems Challenges
By John Richardson CHINA’s coal reserves will last only another 38 years at their present rate of extraction, according to Kai Pflug, CEO of Shanghai-based consultancy, Management Consulting – Chemicals, in this article from ICIS Chemical Business. This suggests that the current enthusiasm for coal-based chemicals, as coal supplies become constrained, might wane among China’s […]
Butadiene An Extreme Example
By John Richardson BUTADIENE is an extreme example of what my fellow blogger Paul Hodges described yesterday as happening across several major petrochemicals markets. Panicky buyers have, just as they did last year, “bought forward” in the hope that by so doing they will hedge against even higher feedstock costs in the future. But this […]
Pricing To Struggle For The Rest of 2012
By John Richardson Further confirmation of the themes we raised yesterday emerged from an interview with a senior polyolefin industry source, with some important new analysis. Profitability in Asia is the worst of any of the three regions, he told us, although volumes remain good. In the US, he characterised demand as “pretty reasonable”, but […]
Petchems And The Non-Profit Motive
By John Richardson AS the US contemplates raising its ethylene capacity by up to 29 percent by 2017, we would be fascinated to know whether the companies involved in these proposed expansions, and the “cheer leader” chemical industry observers spurring them on, have ever considered a chart such as the one below: First […]
The Fragility Of the Recovery Story
By John Richardson A VERY illuminating discussion with a Shanghai-located sales and marketing manager for a major Asian polyolefin producer reveals how the post- Lunar New Year “recovery” story being sold by the investment community is on even more shaky ground than we at first thought. Three points worth highlighting, before we publish verbatim what he said, […]
China Polyolefin Demand Growth Flat In 2011
By John Richardson POLYOLEFINS demand growth in China is likely to be flat in 2011 over last year, a senior industry executive and a consultant have told us. “I am quite pessimistic and don’t see the Chinese government winning the battle to bring inflation below 4% during this year (its target) and so the credit restrictions […]
New Normal Course In Frankfurt On 16-17 June
The blog is excited about its first New Normal seminar in Frankfurt, Germany this month. It follows February’s successful launch in Singapore, and is being held in association with International eChem on 16-17 June. The Workshop aims to provide a comprehensive understanding of the factors that will impact the petrochemical market over the next few years: […]
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