- Sasol’s spot earnings increased to R25.88/share this week as oil
prices increased and the rand weakened. Refining
margins fell back as product prices lagged the increase in the oil price.
- Our FY20E spot earnings still exclude Sasol’s recent downgrade of the
LCCP EBITDA guidance which could impact our estimates by around R3.50/share.
- Chemical prices took another step down and monomers declined by
another 6%. Polymer prices are also
tracking lower as expected.
Global Chemical News
- ICIS reports that the outbreak of the Corona virus could impact Chinese demand for polyethylene by 1.5mn tons if downstream industries resume operations by the second half of March.
- ICIS reports that China will be offering waivers on extra tariffs imposed on US polyethylene imports. Importers can apply for a waiver and pay the pre-trade war duty of 6.5% instead of 34% (link).
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