- Prices continue to trend lower driving spot earnings even lower. Sasol’s implied refining margins declined by 46% this week as petrol cracks turned negative with the current spot crack at -$4.56/bbl. Diesel cracks are holding up around $11.50/bbl.
- Petrochemical prices are lower but falling at a slower rate than energy prices. Asian ethylene declined by 8% and propylene by almost 11%. Polymer prices were flat or lower by low single digits.
Global chemical news
- The Corona virus is not only impacting demand but supply as well. At least three Indian producers have or intend to declare force majeure (link) while logistics in ports are being impacted (link). Shell has also halted construction at it Pennsylvania cracker project (link).
- Companies in the plastic resin supply chain are packaging and moving goods as normal but are concerned about a possible shortage of export containers to fill with export-bound material. The chemicals industry has been declared essential with a ‘special responsibility’ to maintain work schedules (link).