• 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).

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