• Higher oil prices, a significant increase in the refining margin as well as higher prices in the C2 value chain sees Sasol’s FY21 spot earnings increase to R15.81/share.
  • Ethylene continues to move higher in Asia and polymer prices have started to react, albeit at a slower rate.  Ethylene prices in the US however declined this week and are now more than $550/t lower than prices in Asia. US polyethylene prices were flat to slightly lower this week.

Global chemical news

  • Sinopec has started up a new $6bn refinery and petrochemical complex in South China.  The venture comprises a 200bpd crude oil refinery and an 800 000 ton ethylene facility (link).
  • US NGL production is set for a steep two-year decline and production is set to decline from 5.3mnbpd to 4.4mnbpd by the end of 2020.  Permian production is set to recover which should keep a lid on ethane prices (link).

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