- Spot earnings are increased to R5.51/share as there was a slight recovery in oil prices while refining margins increased by $2.40/bbl. Both petrol and diesel cracks are above $3/bbl. Crack remain well below our estimates for the year, however.
- While plastic prices continue to move slowly higher the prices for ethylene and propylene continue to fall. Polypropylene prices continue to increase and are now 30% higher than the low point in June. Polypropylene prices are also 12% higher than our estimate.
Global chemical news
- (DRPIC) has announced the suspension of the Front-End Engineering Design (FEED) work for its proposed Duqm Petrochemical Project. The project included 1.6mn ton of ethylene production (link). BASF and its partners have put a propylene plant in India on hold (link).
LG Chemical has shut a 1.16 cracker due to a fire. Downstream units that have been impacted includes a 360kt HDPE facility (link).