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Market Movement'Fool's rally' in petrochemicals?Recent petrochemical price increases could be a "fool's rally," says one analyst who expects polyolefins prices to remain flat until about 2002, when economic recovery in Asia is expected to finally take hold and demand for basic petrochemicals and polymers is forecast to catch up with capacity. Click here to enlarge imageLarge amounts of capacity had been built in response to healthy profits in the mid-1990s. However, the forecasts that suggested these additions were a good idea were wrong, says Fred Peterson, president of chemical industry planning, forecasting, and consulting firm Probe Economics Inc. He cited three scena...

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