- FY21E Spot earnings increased by 15% to R20.00/share as oil prices and refining margins increased significantly (We exclude reversal of currency translations and hedge gains from spot earnings). Spot earnings for FY22 are at R31.30/share/
- Asian monomer prices continue to trend lower and ethylene is 14% lower than the start of the year. Asian polymer prices were flat. US polyethylene prices continue to move higher however, and LDPE increased by $30/t (+2%) and LLDPE increased by $65/t (+6%). US polyethylene prices now exceed Asian prices and in the light of high freight costs US exports to Asia should decrease significantly.
Global chemical news
- Univar Solutions, a global chemical distributor announced that it has reached an agreement with Sasol Chemicals to become the primary national distributor of Sasol’s alcohol and surfactant products in the United States and Canada (link).
- Refining capacity additions in Asia must focus on meeting petrochemical demand to be viable, as a slowdown in transport fuel growth and competition from China pressure margins. Downstream expansions in China also now focus on petrochemicals (link).