- Spot earnings for FY21 dropped down to a loss of R14.74/share this week despite the increase in the oil price last night. The oil price increase is not reflected in published product prices and refining margins declined by 52.5% from last week. Petrol cracks were $5.35/bbl negative with diesel cracks at $8.28/bbl on Wednesday.
- Monomer markets were particularly weak but the rate of decline in the polymer markets is significantly slower and integrated margins continue to increase (Fig 21). Monomer markets were particularly weak in the US and there was little activity in the spot markets. US traders expect polyethylene prices will slide in coming weeks (link).
Global chemical news
- The outlook for Asian gasoline markets remain weak as the economic impact of the corona virus impacts seasonal demand trends (link).
- Demand for resin used to make construction staples like pipes and vinyl siding has retreated in recent weeks, prompting startling price declines as PVC producers seek to unload volumes and traders scramble for buyers (link).