surprisingly that strong promoter of this lc so quiet for the last 2 weeks and the price is recovering now..so its better for him to remain quiet till $2..5555
According to the Korea Petrochemical Industry Association, China accounted for 42.9% of Korean petrochemical companies’ exports in 2020. That proportion fell to 36.3% in 2023 after Chinese petrochemical companies began aggressively investing in facilities starting in 2020.
China’s ethylene production surged 60% to 51.7 million tons in 2023, compared to 32.3 million tons in 2020. Its production volume is projected to grow to 56.0 million tons in 2025, according to industry observers.
China is 100% self-sufficient in its supply of basic petrochemicals such as ethylene and propylene, referred to as the rice of the industry. Its supply is forecast to exceed demand by 20% in 2025.
What's worse, China is dumping its products in Malaysia and other Southeast Asian markets to make up for reduced demand at home.
In the market of intermediate feedstocks such as paraxylene and propylene, which generate higher margins than basic petrochemicals, China is also emerging as a stronger player.
It is projected that China will meet all its needs for intermediate petrochemicals without imports by 2025.
Due to the supply glut, the ethylene-naphtha spread, or the difference between the prices of ethylene and its raw material naphtha, halved to $195 per ton in February this year, versus $398 in 2021. Its break-even point is about $300 per ton.
LC titan not so positive market outlook. Look at Petronas chemical with parent company { Petronas} backing them up. has forecast a gloomy outlook for the industry coming 1-2years. LCtitan with heavy financing & borrowing costs of 11 billion would faced much more hurdles. Even selling off their Indonesia factory would not mitigate current dire situation. Without any injection or new capital pump in. Strong possibility of ending up like rumors of LC titan in Korea having a moratorium short of disposing assets {fire sale of assets} not a good time for the industry
Doesn't look good. LCtitan need some positive news flow. Alot of bad news forth coming. Head office LOTTE CHEMICAL facing negative cash crunch doesn't bode well. Market outlook looks depress with high inventories with muted demand. Demand on raw methanol, polyolefins and mono ethylene glycols equally bad
No right issues at the moment. But if co persists to incur losses, then most probably Co needs to inject more funds because banks may reluctant to lend money to downtrend biz
Similar to POS , ASTRO and many more ... when you thought below RM1 is "cheap"... then 0.80 ... then 0.50... then 0.30.... then 0.20 .... Complete disbelief
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Lsly88
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Posted by Lsly88 > 2024-09-02 11:47 | Report Abuse
the more he hard sell this LC,the price dropped further..55555