| Welcome |
| Welcome to ICIS Asian Chemical Connections, which will be sent to you each month. As Director of ICIS insight Asia, a Singapore-based training, seminars and in-depth reports business, it’s part of my job to keep track of the big issues and their implications for the chemicals industry. |
| This involves, as the title of this e-newsletter suggests, drawing connections between the macro and the micro, from economics to oil prices and politics to more industry-specific concerns such as supply and demand projections. |
| The articles below, drawn from the deeper analysis available through ICIS, examine the impact of the build up of petrochemicals capacity in the Middle East and the moves Asian producers are making to counter the problem, the issue of potential overcapacity and the legacy of the 1997 Asian financial crisis of the chemical sector. Also covered are recent developments in the MEG and PTA markets in Asia. |
| I welcome your feedback on content and delivery at any time. |
Best Regards,
John Richardson
Director
ICIS insight Asia
Tel: +65 6780 4356
Fax: +65 688 2642
E-mail: john.richardson@icis.com
Website: www.icis.com
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| Asian petrochemicals headed for overcapacity |
| Delegates at the APIC conference in Taipei, Taiwan, last month seemed upbeat, even in the face of huge capacity investments in the Middle East and Asia. Their optimism is based on continuing dramatic growth in China’s economy and demand for imports. But is this well founded, or not? |
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| Can APIC aid worried Asian producers? |
| Increasing supplies into Asia from Middle East petrochemicals producers is beginning to worry regional producers, who are looking to band closer together through APIC, to formulate a strategic response to the threat. |
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| Asian petrochemicals are more risk-aware |
| The Asian financial crisis which impacted 10 years ago this month has forced the Asian petrochemical sector to consolidate. But by weeding out inefficiency, this has allowed the sector to strengthen and made them more cautious about investment. |
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| Asian MEG prices to rise despite new capacities |
| Asian monoethylene glycol prices may not pull back in August as earlier expected, and the market could remain tight to as late as mid-2008, due to plant turnarounds. This is despite the bringing onstream of Nan Ya’s 700,000 tonne/year MEG unit in Taiwan in August. |
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| Asian PTA recovery could end soon |
| Purified terephthalic acid producers in Asia are seeing a recovery in margins after a dismal June. But this could end in July as traders seek to offload cargoes they have on hand. |
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