- Sasol’s spot earnings were only slightly higher this week as lower oil prices and refining margins were offset by a weaker rand. Spot earnings for FY21 and FY22 are at R27.05 and R43.66/share. Refining margins remain weak and diesel cracks are close to zero.
- Chemical prices in Asia continue to move higher and showed gains in propylene and polyethylene. PVC prices increased by almost 15% to the highest level in almost 20 years. US polyethylene prices were flat but ethylene prices were slightly lower.
Global chemical news
- Kansas City Southern railway in the US has announced a merger with Canada Pacific Railway. KSC owns an operates a railyard at Sasol’s LCCP site in the USA (link).
- While the majority of US polyethylene plants have restarted, a significant amount of offgrade resin has been produced. Spot prices remain above contract prices as processors have to compete for limited material (link).