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Asian Chemical Connections

MEG bucks the trend

By Malini Hariharan There are some exceptions to the generally weak petrochemical markets seen in Asia these days and monoethylene glycol (MEG) is one such product. Spot prices have hit a 44-month high of $1,275-1,280/tonne CFR China and are expected to soon cross $1,300/tonne, close to levels last seen in January 2008, reports Judith Wang, […]

Last chance for Taiwan petchems

By Malini Hariharan The Taiwanese government is once again talking of removing a ban on cracker investments by Taiwanese companies on the mainland. The country’s minister of economic affairs said late last week that the government is willing to consider lifting the ban provided certain conditions are met. Taiwanese companies must have a controlling stake […]

Rocky road ahead

By Malini Hariharan Asian polyolefin producers confront yet another challenging week. The macro environment suggests that implementing price hikes for September cargoes will be difficult. Stock markets around the world continue to be jittery with concerns about a US recession and debt problems in Europe still in the forefront. Support from oil also appears uncertain. […]

China’s bank lending nears its Minsky Moment

by Paul Hodges China’s credit bubble is one of the largest the world has ever seen. This is true not only of its total size, but also in relation to GDP. The history of credit bubbles is very clear about what happens next. Anyone who has followed the US subprime lending disaster will know the […]

Place Your Bets – Who Is Right?

By John Richardson DOW Chemical CEO Andrew Liveris said in a 27 July conference call that China’s industrial economy was still doing very well. “They’re managing themselves down very nicely,” he added, pointing to official GDP growth numbers of 8-9%, which translate into chemicals and plastics growth of 12-13%. “We’re not seeing any issue here […]

Cotton corrects; will polyester follow?

By Malini Hariharan After last year’s stunning rise, cotton prices have plunged 53% in the last four months from a 140-year peak of $2.15/lb on 4 March. Prices have fallen 38% in July with cotton for December delivery quoted at 98.63 cents/lb on the Intercontinental Exchange. The swift correction in prices is based on expected […]

Sleepless in Riyadh

By Malini Hariharan CEOs of Asian petrochemical companies worried about rising feedstock costs, a weak economic outlook and profitability should have been reassured to read over the weekend that even Mohammed Al-Mady, vice-chairman and CEO of Sabic is having sleepless nights. His chief concern is keeping Sabic’s record profits at record levels. Sabic churned out […]

China’s methanol economy

By Malini Hariharan China is well set to take on an even larger role in the global methanol industry. The country already accounts for a little over 40% of demand and its share is set to expand rapidly in the coming years. The blog recently caught up with Ken Yin, the China methanol markets editor […]

China Polyolefin Prices Rally

In the second part of our analysis of the effect of China’s latest interest-rate rise we look at how the polyolefin market has alllegedly taken the decision in its stride. Crude markets are a different story altogether…. By John Richardson CHINA’S polyolefin market has improved over the last week thanks to a recovery in oil prices […]

Methanol stays strong, but for how long?

By Malini Hariharan The doom and gloom affecting many segments of the petrochemical industry has yet to reach methanol. Asian spot prices have been stable since January and have hovered in the $340-350/tonne range during the last three months. Methanol traditionally tracks crude oil prices but the product has been unaffected by the recent slide […]

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