• 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).