By John Richardson IT CONTINUES to surprise and disappoint me how every minutiae of the recent US petrochemicals outages have been pored over by analysts and yet relatively little attention is being paid to plant operations in China and the real, underlying nature of the country’s petrochemicals demand. This is despite China being far more […]
Asian Chemical Connections
China’s missing data still point to unclear direction for exports, petchems demand
By John Richardson THE GOOD NEWS is that the total US dollar value of China’s total exports increased by 33% in January-February 2020 to $483bn over the same first two months in 2019, according to a few further morsels of trade data that emerged yesterday. A comparison with 2019 is much more relevant than drawing […]
China’s “two sessions” in 2021 could easily set the direction of global petchems for decades to come
By John Richardson DO YOU have a dedicated team studying the policy outcomes from this year’s meetings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) which began last Friday and finish on 11 March? (These annual meetings are commonly referred to as the “two sessions”. For reasons described below, […]
Why it is obvious few, in any, conventional steam crackers will start-up after 2030
By John Richardson I SAID TO a contact earlier this week that it was remarkable that a senior executive at a petrochemicals company thought few, if any, conventionally built steam crackers would come online after 2030. His response was, “of course, that’s obvious”. But from the perspective of some other industry executives, the future is […]
China paraxylene imports may be just 6.6m tonnes in 2021 – 58% lower than only three years ago
By John Richardson PLEASE DON’T say I didn’t tell you. Further big declines in China’s paraxylene (PX) imports seem likely in. We could also see less dramatic falls in polypropylene (PP) and styrene monomer (SM) imports this year, which I shall detail in later posts. But here a I shall focus on PX. This year’s […]
The new oil shocks: semiconductor supply shortages threaten the global economy
By John Richardson HIGH VALUE semiconductors, which are defined as five nanometres (billionths of a metre) or less in size, have become the new oil – as vital as the black stuff for the workings of the global economy. Semiconductors will, in fact, become even more important as the age of oil comes to an […]
China polyethylene imports set to remain strong in 2021 despite big local capacity growth
By John Richardson IT WAS a tremendous year. China’s 2020 polyethylene (PE) demand growth over 2019 averaged 10% across the three grades. This comprised a 13% increase in demand for high-density PE (HDPE), a 2% decline in demand for low-density PE (LDPE) and a 13% rise in linear-low density PE (LLDPE) demand, according to my […]
Sustainability means reducing carbon emissions as well as plastic waste
By John Richardson THIS IS VERY much a personal plea to our industry about what I see as the biggest challenge we face in 2021 and beyond: carbon and other greenhouse gases. “We need to rebrand climate change as the climate crisis,” a source who works for an oil, gas and petrochemical company has been […]
Assessing global PP prospects next year: seeing the simplicity through all the complexity
By John Richardson IT COULD be very complicated and yet, as the chart above indicates, it might instead by extremely simple. Here I use the example of polypropylene (PP), but similar complexities and one simplicity also apply to the paraxylene and styrene markets and all their downstream derivatives, as I shall discuss in later blog […]
Risks ahead for global polypropylene much greater than for polyethylene
By John Richardson THERE SEEMS to be few risks ahead for the global polyethylene (PE) market over the next five years. The internet sales boom, despite all the talk about using less plastic for sustainability reasons, promises to provide strong support for consumption. The average internet sale is dropped 17 times before delivery, providing a […]
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