Source of picture: Rex Features By John Richardson WE are worried that the recovery in Asia’s chemicals and polymer markets may not be sustained. One of our biggest concerns is that China’s small and medium-sized enterprises (SMEs), which make up 60% of the economy and are responsible for 80% of employment, are under more […]
Asian Chemical Connections
China SMEs Under More Strain
Source of picture: Rex Features By John Richardson WE are worried that the recovery in Asia’s chemicals and polymer markets may not be sustained. One of our biggest concerns is that China’s small and medium-sized enterprises (SMEs), which make up 60% of the economy and are responsible for 80% of employment, are under more […]
China’s PE Cycle Repeats Itself
By John Richardson THE above chart shows that China’s polyethylene (PE) demand growth has been well below that of overall GDP for most of the years between 2006 and 2012. This supports the argument that economic growth has been too heavily focused on investment rather than consumption, given that the majority of PE goes into […]
Northeast Asian PE Margins Positive
By John Richardson THE latest Northeast Asian high-density polyethylene (HDPE) chart from ICIS (see above) hardly suggests a tremendous increase in profitability, despite the improvement in sales volumes and sentiment in China that we first highlighted in December, and provided more details on last week. At least the Northeast Asian producers have moved into slightly positive territory, though, […]
US Threat To Asian Polyolefins
So far so good…lack of arbitrage in 2012 By John Richardson Despite a strong recovery in China’s polyethylene (PE) prices and sales over the last month-and-a-half, producers are viewing the coming year with great trepidation. One of the wild cards is how the US producers behave in 2013, as we also discussed in November. Faced […]
China Polyolefins Recovery Continues…..
…..For Now By John Richardson RELATIVE to most of 2012 – when China’s polyolefins market was in dire straits – November, December and early January have been excellent for traders who took the right positions. At least one producer has also reporting a strong recovery in sales. “I thought there would be a mini-rebound […]
China’s Internet Decision
By John Richardson CHINA’S polyethylene (PE) market sentiment rebounded in mid-December on greater confidence that the country’s new leaders meant business on economic reform. And since then, commodity prices in general, including those for iron ore have rebounded thanks to a slew of data that indicates a recovery in growth. Some of the renewed confidence in […]
China’s Two-Speed Recovery
By John Richardson CHINA appears to be in the midst of a two-speed recovery as a result of stronger domestic growth, while the export environment remains very bleak. “Our polyethylene (PE) sales to converters who sell into the domestic market have picked up very well in Q4,” said a source with a global polyolefins producer. […]
China Polyethylene Sentiment Recovers
By John Richardson CHINA’S polyethylene (PE) market is enjoying a mini-rebound on improved confidence in the ability of politicians to turn the economy around, the blog has been told. There seems to be a feeling out there that more help is on the way for the small and medium-sized enterprises (SMEs). The SMEs, which make […]
China PE Growth At Only 4%
By John Richardson CHINA’s polyethylene (PE) demand growth was up just 4% in January-October of this year compared with the same period in 2010, as the chart above from Global Trade Information Services (GTIS) indicates. And yet in January, many of the people the blog spoke to were confidently predicting double-digit demand growth for 2012. […]
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