- Sasol’s spot earnings were slightly lower this week as refining margins weakened, and ethane prices increased. FY21 spot earnings are at R6.72/share for FY21. Diesel crack spreads remain weak and petrol cracks have declined by $2/bbl (>50%).
- Asian petrochemical prices were flat last week with the exception of polypropylene. PP prices have increased by around $200/t (+24%) since the lows achieved in March. US integrated polyethylene margins remain relatively high but Sasol’s facilities in Lake Charles are probably still shut down.
Global chemical news
- The EU has launched an anti-dumping investigation into MEG originating from Saudi Arabia and the US after producers filed a complaint. MEG remain in significant oversupply globally and US exports have increased as new capacity came to market (link).
The European Council adopted a proposal to levy a plastic tax from 1 January 2021. The tax of €800/t is set to be imposed on countries and not on polluters or consumer packaging companies (link).