By John Richardson THE nature of demand in China is changing, despite the belief among some chemicals analysts, and companies, that everything will soon return to normal. Here is a summary of our key arguments. Please print off and pin to your office, or boardroom, wall for discussion – and let us know if you […]
Asian Chemical Connections
US Euphoria
By John Richardson THE shale gas advantage, along with the revival of the US economy, made for a euphoric atmosphere at last week’s International Petrochemicals Conference (IPC)* in San Antonio, Texas. China was only a blip on the corner of the radar screen because the talk was so domestic-focused. The only doubts expressed were over […]
Further China Evidence
By John Richardson FURTHER evidence of weakness in the Chinese economy has emerged via the polyolefins market. In an excellent Insight article, my ICIS colleagues Chow Bee Lin and Peh Soo Hwee say that China’s plastics processors are resisting additional price increases because their customers, the manufacturers of finished goods, are struggling. The combined retail […]
China’s Leadership Struggle
By John Richardson IT is still an article of faith among some people in the chemicals industry that all you have to do is concentrate on cost-efficient supply and the demand in developing countries such as China will inevitably continue on an even, upward course. But this week’s extraordinary political events in China further demonstrates […]
China Inland Boom: Who Will Benefit?
By John Richardson This fascinating article in The Economist raises further important questions about the impact on petrochemicals of changing migration patterns. Last week, we discussed how what industry executives had been discussing for three years has finally happened: Severe labour shortages in the southern and eastern provinces post-Lunar New Year, preventing chemicals and polymer […]
The Changing Landscape For Manufacturers
The New Normal involves three major transformations in the nature of consumer markets, which are: • The increasing size of the New Old 55+ age group in the West. • Too many young people struggling with higher unemployment. • Large number of people moving out of poverty in the developing world. These are the […]
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 […]
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 […]
Doing More With Less – The Products Of The Future
THE global economy is moving into a difficult period, as it transitions to the New Normal. Debt levels are high, and incomes are under pressure, particularly for the large numbers of people moving into retirement. Cost must be the key criteria when examining the opportunities for new product development and research. Chapter 8 of our free […]
Saudi Gas Costs Head Higher
By John Richardson SAUDI Arabia’s petrochemical producers could soon, or may already, be paying $1.50-2.00/mmBTU for their ethane supplies. “We are not sure whether the proposed increase from $0.75/mmBTU will take place from 1 January this year or from early 2013, but we think it is going to happen,” said one industry source on the sidelines […]
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