- 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).
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