• Sasol’s spot earnings are lower this week, mainly due to a stronger R/$ exchange rate as well as a lower oil price.  Spot earnings for FY21 are at R7.93/share with earnings for FY21 falling back into a loss.
  • Chemical prices were generally flat in Asia but US chemical prices were generally higher Ethylene prices increased 23% while LDPE prices were 5% higher.  Ethane prices were 9% higher than the previous week.

Global chemical news

  • S&P launched a 2H20 outlook report for petrochemicals highlighting oversupply in both ethylene, propylene and the derivatives.  The MEG markets also remains in oversupply and the US in particular has seen export volumes rise (link).
  • Resin traders in the USA reported stronger demand for both ethylene as well as polyethylene, driving spot prices higher and producers were able to secure a price increase for July.  Polypropylene markets were particularly strong (link).