• Spot prices still point to heavy losses in FY21 (R25.09).  Key drivers remain the low oil price, compounded by weak crack spreads.  All chemical prices are lower than our expectations.
  • Refining margins are higher and approaching zero, but diesel cracks remain negative $1.00/bbl.  Ethylene prices in Asia increased by 14% from last week but polymer prices were generally flat.  Ethane continue to rise despite softer natural gas prices.

Global chemical news

  • Sasol has issued a request for information for the supply of 600MW of renewable energy to its South African operations.  The renewable electricity could replace purchased electricity and reduce scope 2 emissions (link).
  • Formosa Plastics has delayed the start-up of a new 400kt LDPE plant in Texas after some employees and contractors tested positive for COVID-19.  The plant, which was expected to come online in February is now expected to start late July or early August (link).