- Sasol’s spot earnings were flat this week as slightly higher oil prices and refining margins were offset by a stronger rand. FY21 spot earnings are at R6.56/share for FY21. Refining margins remain particularly weak and diesel cracks are still negative.
- While Asian ethylene prices were higher, polyethylene prices declined. US polyethylene prices were also flat. US integrated polyethylene margins remain high relative to margins achieved in the first half of the year.
- The announced LCCP disposal will impact spot earnings negatively.
Global chemical news
- Sinopec has started a new 800kt naphtha cracker in the Guandong Province. The cracker is integrated with polyethylene and ethylene oxide facilities (link).
- The uptrend in China’s import PE market that kicked off in mid-August has stumbled recently due to the softening in the local markets. This has even applied to LDPE, in which the amount of price increases had been more visible than other grades due to tighter supply (link).