- Spot earning continue to increase and are at R8.05/share for FY21. Oil prices were and the rand were flat and refining margins were slightly higher but remain weak and petrol cracks in particular have declined below $1.00 during the week.
- Asian Chemical prices continue to increase with monomer prices between 4 and 5% higher and LDPE and propylene prices continuing the upward moves. These respective prices have now increased by 34% and 19% since the start of Sasol’s financial year. US ethylene and polyethylene prices remained flat, however.
Global chemical news
- US ethylene exports rebounded as crackers returned to service after the hurricanes in Louisiana. Navigator recently hinted of a potential expansion at its export terminal in Houston. Ethane demand has increased but high inventories are keeping prices in check (link).
- Monoethylene glycol prices are expected to come under further pressure in the first half of 2021 due to the forecast global recession, which will add to ongoing uncertainty over how increasing US production could be absorbed in Asia (link).