• 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).