- Spot earnings for FY21 are now at R19.21/share with FY22 spot earnings at R31.02/share. The significant increase in spot earnings are as a result of higher oil and chemical prices. Refining margins have increased but remain well below average.
- Asian ethylene prices have breached $1000/t and are pulling polymer prices higher as well. US ethylene prices have increased by 69% since the start of December and are at $968/t. The market is in steep backwardation however with June prices at $484/t. US polyethylene markets remain active and continue higher (link).
Global chemical news
- Asian ethylene markets could experience a challenging year with 11 new crackers to come online in 2021. Derivative capacity is growing at a similar pace (link). Polyethylene and MEG supply is set to grow by more than 20% in the region with demand growth lagging (link).
- A continued shortage of shipping containers has seen freight costs for polymers increase threefold to $200-300/t. These higher freight costs are contributing to higher polymer prices impacting polyethylene, polypropylene and PVC (link).