- Spot earnings for Sasol continue to rise and core HEPS at spot for FY21 are currently at R26.32/share. Spot HEPS for FY22 are at R47.51/share. While oil prices were slightly lower, refining margins rebounded by14% as refineries in the US shut due to cold weather.
- Asian Chemical prices increased significantly with monomer prices almost 15% higher and polymer prices following suit. US ethylene prices increased by more than 20% and are now higher than Asian prices. Polyethylene prices were stable, however.
Global chemical news
- Traders report that that 80-85% of US polyethylene and polypropylene production was shut as a result of cold weather and around 900kt of production was lost as a result. Inventories have been drawn down and imports to the US are increasing. Upward price pressure remains strong as demand remains strong (link).
- The restart of petrochemical plants in the US could take longer as pipes that were exposed to freezing temperatures have to be inspected before start-ups. Around 75% of US cracking capacity has been shut as a result of the cold weather (link).