By John Richardson LIKE the boy who cried Wolf the blog might not be believed as we once again warn about the risks ahead for China’s economy. We have been worried for a long time that eventually China’s huge economic stimulus package, in response to the threat of social unrest, would cause some major problems. […]
Asian Chemical Connections
Broad Commodities Sell-off Beckons
By John Richardson THE blog remains extremely worried that there is about to be a major sell-off of commodities in general, including petrochemicals, as conditions right now feel very similar to those in 2008. Whether we will face a systemic shock to the system, a black swan, on the scale of Lehman Bros is of […]
China Quiet Market Persists
By John Richardson LACK of credit and inflation are becoming even greater problems in China, which is reflected in polyolefin markets that remain very quiet indeed. “It is ice cold out there with very little activity. Importers are waiting and hoping for some kind of improvement,” a Singapore-based polyolefin trader told the blog today. A […]
Asian C2 Muddle Reflects Wider Uncertainty
By John Richardson ASIAN ethylene markets appear to be in a muddle over the Middle East supply picture. Click here for a graph of the latest pricing – EhylenePrices1March2011.ppt A shipping industry source we spoke to recently insisted that more rather than less C2s were being exported from the region as opposed to the reduced […]
Petchems Confront Another Lehman Bros
By John Richardson THE main issue facing Asian cracker operators a couple of weeks ago was how long co-product credits would continue to compensate for a moribund China polyethylene (PE) market. Feedstock cost is now the biggest immediate worry. A hike in naphtha saw integrated low-density PE (LDPE) margins plummet by $172/tonne, according to the […]
European petchems could be tempted to overproduce
By John Richardson EUROPEAN refiners are “awash with naphtha” as a result of long-term structural length and a lack of arbitrage, a petrochemicals feedstock purchasing manager told the blog yesterday. The decline in US gasoline demand (according to most experts consumption in the States peaked in December 2007 and has been falling ever since) has […]
Saudi Producers Remain Confident
By John Richardson THE optimism of Saudi Arabian petrochemical producers remains extremely high, according to an industry observer who spoke to the blog. One might think we were to some extent stating the blatantly obvious as their margins will have swelled thanks to higher oil prices. But there is also little concern among the producers […]
What an excellent boss
By John Richardson VERY occasionally the blog deviates from its close coverage of petrochemical markets to focus on broader business issues. Today is one such occasion after a discussion with a manager of a major Asian chemicals trading operation. The manager is convinced that the good times are behind us, to refer back to the […]
How Can This Year Not Be A Let Down?
Ali Naimi, Saudi Arabia’s oil minister, suggests more oil supply could be on the way Source of picture: stonesoupstationblogspot.com By John Richardson CHEMICALS analysts at HSBC have added further weight to the argument that 2011 could well turn out to be a year of disappointment following the very high expectations set […]
A Toxic Combination: Sentiment And Oil Prices
By John Richardson Yesterday we suggested that demographic challenges in the West, the strain on resources resulting from rising consumption in emerging markets and rising inflation should heavily feature in discussions at this week’s World Economic Forum in Davos. Chemical industry leaders who could be attending include Mohamed Al-Mady, CEO of SABIC, Andrew Liveris, CEO […]
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