SINGAPORE (ICIS)–Click on here to see the
newest weblog put up on Asian Chemical Connections
by John Richardson.
Dow Chemical’s announcement on chopping
polyethylene (PE) working charges is a transparent
signal of weakening international demand and oversupply
of the polymer, together with persistent logistics
constraints.
In a 24 August letter to prospects, Dow stated it
was chopping PE working charges throughout its asset
ase, briefly reducing international nameplate
capability by 15%.
The weblog sees one of many issues for the
international trade as demand weak point in China,
the place the newest information level to, as an illustration, a
4% decline in LLDPE demand in 2022 over final
12 months.
File low China CFR linear-low density PE
(LLDPE) worth spreads over CFR Japan naphtha
prices seem to mirror the weak demand
outlook. The most recent information additionally recommend China’s
LLDPE web imports might fall by 800,000 tonnes
this 12 months, following a 1.1m tonne decline in
2021 over 2022.
What occurs in China is a giant deal globally
as a result of final 12 months it accounted for 37% of
international LLDPE demand in 2021, up from 15% in
2000. China was additionally accountable for 50% of
international web imports between 2000 and 2021 with
Europe in second place at 27%.
Logistics disruptions clearly additionally stay a giant
situation for the worldwide PE trade in what are,
total, very difficult market circumstances.
Editor’s observe: This weblog put up is an opinion
piece. The views expressed are these of the
creator, and don’t essentially characterize these
of ICIS.
