• Sasol’s spot earnings are down significantly following our downgrade in earnings (link) as well as (ii) a sharp decline in oil prices, a significant decrease in refining margins as well as chemical prices.  Spot earnings for are at R13.71/share and R18.73/share respectively.
  • Polymer prices are now following monomer prices lower which in turn continue to track oil prices lower.

Global Chemical News

  • Refining margins have been particularly weak in the past week as the Coronavirus impact demand in China in particular.  Demand for jet fuel and diesel is particularly weak (link).
  • The Coronavirus continues to wreak havoc on China’s chemicals industry, though there are early signs of recovery in demand for the polyolefins sector.  Inventories remain high however and prices remain under pressure (link)

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