- FY21E Spot earnings declined to R17.40/share this week as oil and chemical prices showed modest declines. Spot earnings for FY22 are now at R26.93/share (ex. the impact of higher PKO prices).
- Asian chemical prices were slightly lower, but PVC prices remain at peak levels last seen before the GFC. US ethylene prices declined significantly (-31%). US polyethylene prices were higher, however. Ethane prices have risen to almost 25cpg, following natural gas prices higher. US PEmargins remain at levels last seen in 2018.
Global chemical news
- With US and Asian polymer prices trading closely together and high freight rates, the arbitrage window has shut. US exports are targeting regions such as Europe and Latin America (link).
- South Korea’s demand for polypropylene and polyethylene, which are essential for making mask filters, hypodermic needles and protective medical suits, jumped more than 30% in 2020 (link).