Could petrochemicals be entering a down cycle?

June 25, 2019

article image
Prices for most petrochemicals have stumbled in the past month, raising new questions about whether the global petrochemical market is potentially entering a down  cycle if the softer pricing continues much longer. Over the past month many petrochemical prices have hit new lows for 2019, according to an analysis from S&P Global Platts. That includes the polyethylene value chain, one of the most common types of plastic and a key driver of the petrochemical boom on the Gulf Coast. "It is very possible that producers are reducing their high inventory levels to manage working capital at the end of the second quarter. If that is the case, then this recent "bear market" trend may be short lived as we move into the third quarter," analysts at Platts wrote in a recent market analysis. But if prices don't bounce back in a 4 to 6 weeks it's possible the market could finally be entering a long-anticipated cyclical downturn, Platts said. A swath of a new capacity has come online recent years including polyethylene, ethylene glycol and the polyester chain, and the market could be over supplied. Here's a snapshot of some recent markets affected, according to Platts.

Spotlight

CUF

At CUF, there is a Chemistry bonding us. A passion passed down by the founder of the company, Alfredo da Silva, who has captivated shareholders and employees alike over a period of 150 years.

OTHER ARTICLES

Transporting biological and chemical materials - what you need to know

Article | February 13, 2020

The landscape of biological and chemical logistics has changed rapidly - as have the regulatory frameworks around it. What has not necessarily kept pace is the end-user understanding of the nature of these logistical processes, their opportunities and their constraints. Twenty years ago, the transmission of biological and chemical materials was limited to a small range of organisations: usually national and international research companies, hospitals, major university departments, police and military departments with forensic responsibilities.

Read More

Setting record straight on testing harm in chemicals

Article | February 13, 2020

The modern world is built on chemicals, be it the medicines we use, or cleaning fluids, crop protection products, or the raw materials for everything from laptops and mobile phones to clothes and furniture. Across all, we have created an entire modern society with chemicals, and, as a result, constantly stretched the size of the world population we can feed, clothe and shelter. Yet, balancing all the gains from the modern chemistry around us against any negative environmental and human impact has been a rising concern, making for ever greater focus on testing and on risk assessment.

Read More

Why chemical characterization is the best way to assess patient risk

Article | February 11, 2020

Everyone is very familiar with the phrase when buying a house: All that really matters are three things - location, location, and location. This same principle applies to extractables and leachables chemistry analysis – the three things that truly matter are identification, identification, and identification. The greatest growth in the past ten years in demonstrating the safety of medical devices and container closure systems for drugs has been using analytical chemistry to determine what chemicals can leach from the device and what the patient is exposed to during its intended use.

Read More

How Chemical Companies Benefit from the Experience Economy

Article | February 10, 2020

To feel or experience from a business engagement started with customer experience mainly in the consumer products business. Today it has extended to even knowledge industries like the chemical industry where experiencing or feeling can be leveraged to include all stake holders from customers primarily to employees to supply chain people & suppliers and all else. With digital technologies this has become easier than before. The benefits from promoting the ‘feel’ or ‘experience’ emotion could be multifarious for the chemical industry as described in this article.

Read More

Spotlight

CUF

At CUF, there is a Chemistry bonding us. A passion passed down by the founder of the company, Alfredo da Silva, who has captivated shareholders and employees alike over a period of 150 years.

Events