• Sasol’s spot earnings retreated this week as oil prices pulled back sharply.  Refining margins remained weak and diesel cracks dropped around $1/bbl.  Spot earnings for FY21 is at 26.78/share and spot earnings for FY22 declined by 23% to R42.16/share.
  • Chemical prices in Asia continue to move higher with gains in monomer and polymer prices.  PVC prices have increased to multi year highs.  Ethylene prices in the US continue to move higher but polyethylene prices were flat.  Ethane cracking margins are approaching the lofty levels of 2014 (link).

Global chemical news

  • The new predicted capacity is starting up and South Korea’s Daelim Industrial started up its new 200,000 t LLDPE unit at Yosu at the end of February (link).
  • US Chemicals traders predict that it will take “a long time” for polyethylene back order to be filled and inventories to be rebuilt before fundamentals come into balance and prices to retreat to normal levels (link).