- Sasol’s spot earnings are sharply lower this week, mostly as a result of downgrades due to weak volume guidance for the North American chemicals businesses in particular. FY21 spot HEPS are at R5.28 and we expect a loss of R6.67 at the LCCP.
- Refining margins remain particularly weak. Polymer prices in Asia showed small increases in the week but ethylene prices continue to fall and is down another $35/t. US polyethylene prices were flat to slightly higher. Plastic traders report on dwindling inventories and strong demand ahead of the arrival of Hurricane Laura (link).
Global chemical news
- Most chemical plants in the east of Texas and South West Louisiana have shut down ahead of Hurricane Laura and around 29% of capacity in the US was shut down as a result. Polyethylene capacity shut in ranges between 29% and 46%. The ports of Houston and New Orleans have been closed which should delay exports (link).
- Industries Qatar is said to purchase Qatar Petroleum’s stake in the Qatar Fertiliser company for $1bn from Qatar Petroleum (link).