- Oil prices and refining margins moved lower this week and the rand is also stronger. Spot earnings for FY21 were sharply lower at R8.27/share as a result.
- Chemical prices were higher however and Asian ethylene prices continue its upward march and polyethylene prices have also started to move higher. Prices in the US remain largely flat however, but ethane prices have retreated below 20cpg.
Global chemical news
- Four large crackers are set to start operations in China in the next 3-6 months. These crackers are set to add 3.9 million tons of ethylene capacity (link).
- The American Chemical Council (ACC) expects chemical volumes will decline by 9.3% this year. Plastic resins are expected to decline by 5.6% and specialty chemicals, other than coatings, are set to decline by 11.8% (link).