Petrochemicals

Oil markets enter the endgame as car companies rush to electrify

Almost every day now sees a car company rushing to announce its plans to boost Electric Vehicle (EV) output. And key OPEC members – such as the UAE – are starting to recognise they have only a few years left to sell their oil, before the market disappears. Last May, the influential International Energy Agency

The post Oil markets enter the endgame as car companies rush to electrify appeared first on Chemicals and the Economy.

Oil markets enter the endgame as car companies rush to electrify Read More

Supply chains set to transform as companies start to reshore

Major new opportunities are starting to appear in today’s New Normal world, as I describe in a new analysis for the Institution of Chemical Engineers. Please click here to read the full article. We are set to enter a “New Normal” world as economies slowly reopen again with the arrival of Covid-19 vaccines. This will

The post Supply chains set to transform as companies start to reshore appeared first on Chemicals and the Economy.

Supply chains set to transform as companies start to reshore Read More

Biden’s Earth Day Summit puts plastics recycling on the fast track

Plastics has long been the ‘odd one out’ in terms of recycling. Steel, aluminium, glass, cardboard, rubber and paper routinely have up to a 70% rate of recycling. But plastics has been stuck at around 10% for a long time. President Biden’s Earth Day Summit is likely to change this picture, and quickly. The reason

The post Biden’s Earth Day Summit puts plastics recycling on the fast track appeared first on Chemicals and the Economy.

Biden’s Earth Day Summit puts plastics recycling on the fast track Read More

Businesses face “biggest imposition of red tape in 50 years” as Brexit begins

Most companies had closed when the new EU-UK Trade and Cooperation Agreement (TCA) was finally announced on Christmas Eve. And they are only now starting to get their heads around what it all means. Essentially, it creates the biggest shake-up to the UK’s trading relationships since 1973.  As the BBC’s Economics Editor reported: “It is

Businesses face “biggest imposition of red tape in 50 years” as Brexit begins Read More

Local circular plastics solutions to replace mega projects business model

NEW YORK (ICIS)–There will be a paradigm shift away from mega crackers producing massive volumes of plastics for export, and toward local recycling of plastic waste for local finished goods production. Joe Chang, editor of ICIS Chemical Business, summarises my presentation earlier this month to the Societe de Chimie Industrielle in New York. “The industry

Local circular plastics solutions to replace mega projects business model Read More

Global chemical industry – key trends for success in today’s New Normal

The chemical industry is the best leading indicator for the global economy. On Friday, I had the privilege of discussing a wide range of key issues with Ajaya Sharma in a lunchtime interview for India’s main business station, ET Now. Our interview focused on a number of critical areas and why the future is going

Global chemical industry – key trends for success in today’s New Normal Read More

China’s lockdown makes global debt crisis now almost certain

Beijing has a population of 21.5 million, but you wouldn’t know it from this BBC video from last Thursday.  Normally busy streets and transport systems are eerily empty, with food deliveries often the main traffic on the roads. It’s the same picture in industry, with the Baidu Migration Index reporting only 26% of migrant workers

China’s lockdown makes global debt crisis now almost certain Read More

Europe’s auto sector suffers as Dieselgate and China’s downturn hit sales

Trade wars, Dieselgate and recession risk are having a major impact on the European auto industry, as I describe in my new video interview with ICIS Chemical Business deputy editor, Will Beacham. One key pressure point is created by the downturn in China’s auto industry. As the chart shows, it has been a fabulous growth

Europe’s auto sector suffers as Dieselgate and China’s downturn hit sales Read More

Trump’s trade war should set warning bells ringing for every company and investor

There should be no surprise that President Trump has launched his trade war with China.  The real surprise is that financial markets, and business leaders, are so surprised it is happening.  He was, after all, elected on a platform that called for a trade war, as I noted originally back in November 2016 – and […]

The post Trump’s trade war should set warning bells ringing for every company and investor appeared first on Chemicals & The Economy.

Trump’s trade war should set warning bells ringing for every company and investor Read More

Hurricane Harvey: lack of insurance will hit Houston’s recovery

“By Monday, the third straight day of flooding, the aftermath of Hurricane Harvey had left much of the region underwater, and the city of Houston looked like a sea dotted by small islands.  ’This event is unprecedented,’ the National Weather Service tweeted. ‘All impacts are unknown and beyond anything experienced.’” This summary from the New […]

Hurricane Harvey: lack of insurance will hit Houston’s recovery Read More

Trump, Xi have 100 days to avert US-China trade war

Last week’s summit meeting between US President Donald Trump and China’s President Xi Jinping was initially overshadowed by Friday’s news of US missile strikes on Syria.  But from the details since released, it is clear the summit will likely have far-reaching impact on the global economy.  As US Commerce Secretary Wilbur Ross revealed afterwards, the […]

Trump, Xi have 100 days to avert US-China trade war Read More

Hope is not a strategy

Chemical companies face difficult times if they cling to the hope that current challenges will simply disappear.  This is my main concern in a new analysis for ICIS Chemical Business. It argues that major change is underway in petrochemicals and polymers markets, which will create winners and losers. The current round of major capacity expansions has been based on two […]

Hope is not a strategy Read More

China’s rising exports: less about growth, more about exporting deflation

China’s move towards self-sufficiency is radically changing global oil and petrochemical markets,as I describe in my latest post for the Financial Times, published on the BeyondBrics blog Markets used to cheer when China’s exports rose, believing this showed the global economy was in good shape. They are still hopeful today, despite the 25 per cent fall in February’s […]

China’s rising exports: less about growth, more about exporting deflation Read More

5 Critical Questions every Company and Investor Need to Answer

Today’s uncertain economic and oil price  environment has created chaos in petrochemical feedstock and product markets.  This creates major risks for producers, consumers and investors. ICIS and International eChem have therefore decided to combine our resources to launch a new Study, that will analyse the potential impact of these developments on the olefins, aromatics and […]

5 Critical Questions every Company and Investor Need to Answer Read More

Europe can win despite age trends

We all know that Europe has an ageing population.  Germany and Italy, for example, have median ages of 45 years.  And fertility rates have been below replacement levels for 45 years, so the relative number of higher-spending young people is reducing.  Instead, there are more and more older people, as life expectancy at age 65 […]

Europe can win despite age trends Read More

Sinopec & China arrive in New Normal of low growth and profit

Sinopec is China’s largest chemical producer and its second largest refiner.  The blog’s annual review of its published Results confirms its uniqueness in global markets. The numbers confirm that it remains focused on increasing production, not profit.  It will be No 2 in global ethylene capacity next year as a result.  The chart above highlights the key metrics, based […]

Sinopec & China arrive in New Normal of low growth and profit Read More

ExxonMobil Antwerp to spend $1bn boosting diesel capacity

When the world changes, companies either change with it or go out of business.  The market for stagecoaches was never the same once cars came along.  And not many students use slide rules today, now calculators are available. Usually, of course, these market changes are slow-moving.  So companies often fail to respond in the hope the old world […]

ExxonMobil Antwerp to spend $1bn boosting diesel capacity Read More

US shale revolution puts squeeze on European chemicals groups

The Financial Times has carried an excellent analysis this week of the key shale gas issues facing the European chemical industry.  It includes comments from a number of CEOs, as well as from the blog.  Its key points are as follows: THE STRATEGIC DILEMMA “European petrochemical makers risk being squeezed between low-cost producers in the Middle East […]

US shale revolution puts squeeze on European chemicals groups Read More

Boom/Gloom Index hits record high as western financial markets soar

The best view is always from the top of the mountain.  At least that is how it feels today, with this month’s IeC Boom/Gloom Index (blue column) hitting a record high.  Nor it is alone, as the S&P500 (red line), the world’s most important financial market index is also at record levels. Central banks broke […]

Boom/Gloom Index hits record high as western financial markets soar Read More

Global chemical operating rates remain well below SuperCycle levels

The latest American Chemistry Council report on global production shows output was up 3% versus September 2012, and just 18% above average 2007 levels.  There was a mixed picture in the main Regions: Asia-Pacific was strongest, up 5.9%, with Japan accelerating as the weak yen helped its exports The Middle East continued to slow, and was up […]

Global chemical operating rates remain well below SuperCycle levels Read More

Grangemouth closure could force downstream converters to shut

  One never wants to see a major petchem plant shutdown, especially one with the history of Grangemouth in Scotland.  It is the UK’s largest cracker site, with ethylene capacity of 1 million tonnes.  Its production has a sale value of $1bn ($1.6bn), and a final value in food packaging, consumer packaging and automotive parts of […]

Grangemouth closure could force downstream converters to shut Read More