We should have originally written ‘integrated low-density polyethylene (LDPE) in paragraphsix, but instead wrote linear-low density PE (LLDPE). It’s now been corrected and apologies for the error – we will be buying some better glasses (less of this “we” – it’s actually “me”!) By John Richardson The rise in ethylene prices to what ICIS pricing says is […]
Asian Chemical Connections
China Latest Growth, Inflation Raise Rate Rise Fears
By John Richardson CHINA’S soaring fourth-quarter GDP (gross domestic product) growth – and the release of the latest inflation statistic – has heightened fears among economists that interest-rate rises will be necessary, risking collapse in house prices if it’s not managed skilfully. Inflation rose to 1.9% in December last year from 0.6% in November, according to […]
China Latest Credit Tightening Blow To Chemicals
By John Richardson CHINA’S decision to temporarily halt lending by some banks – which was announced yesterday – as it attempts to further cool the economy will likely have a significant effect on chemicals demand and pricing. This follows last week’s decision to raise bank reserve requirements and two increases in the inter-bank lending rate […]
Polyethylene Pricing Separates From Fundamentals
By John Richardson Linear-low density polyethylene (LLDPE) pricing in China has become increasingly divorced from industry fundamentals as a result of the growing role of the Dalian Commodity Exchange’s futures contract, claimed a Singapore-based polyolefin trader late last week. And the contract is setting the physical market, resulting in Dalian performing a similar role that […]
“Trust in me, go to sleep,” – the objective of China’s Central Bank
Source of picture: www.forums.comicbookresources.com By John Richardson I loved the analogy in yesterday’s Lex column in the Financial Times, comparing the objectives of any central bank to those of Kaa, the python in Jungle Book (nice excuse for a picture to brighten up the blog). The serious point is that […]
Some more surprises for polyolefins
By Malini Hariharan The Wednesday post on this blog highlighted some of the unexpected turns that the Asian polyolefins market has been taking. There have been more developments over the last two days that are likely to influence markets in the short term. • ICIS news reports that Sabic will significantly cut its January and […]
Polyolefins And Football: An Historic Parallel?
Is history about to repeat itself? Source of picture: www.vietbao.vn The last year for polyolefins has been a bit like the wonderful 1980s and early 1990s for genuine football fans – when the often-repeated phrase of Manchester Utd supporters was “next year, definitely” when they were talking about their prospects for winning the […]
Update 1: Reliance said to be offering $10-12bn
Reliance Industries – which is attempting to buy LyondellBasell – is offering $10-12bn, according to this report from Reuters quoting two sources with direct knowledge of the deal. This would be one of the biggest-ever acquisitions by an Indian company. In 2007, Tata Steel bought Corus for $13bn. Reliance raised $660m through a share sale in September. […]
Reliance Bid For LyondellBasell Confirmed
Reliance Industries has made an offer for LyondellBasell says an official statement released yesterday on the LyondellBasell website: “LyondellBasell has received a preliminary non-binding offer from Reliance Industries Limited to acquire for cash a controlling interest in the company contemporaneously with the company’s emergence from Chapter 11 reorganization. “This offer is in addition to the […]
To Cut Rates Or Not To Cut…
A Famous Ditherer Source of picture: sarafinewordpress.com Chasing higher oil prices and/or a response to the now long-running recovery in Chinese demand that’s become sustainable? Not wanting to sound too much like the start of a famous Shakespeare soliloquy, these are the questions that should be wracking everyone’s brains as they try to figure […]
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