• Sasol’s spot earnings are higher this week and core earnings for FY21 are at R28.81/share.  Spot headline earnings for FY22 breached R50/share.  Oil prices were slightly higher but refining margins remain weak.
  • Monomer prices in Asia increased but polyethylene prices declined for the fourth week.  PVC prices continue higher and are at prices not seen in 20 years.  US ethylene prices were slightly higher, but polyethylene prices remained flat.  US integrated polyethylene margins reached multi-year highs.  We also highlight the increase in ammonia prices, impacting explosive and fertiliser prices.

Global chemical news

  • Legislation has been introduced in US Congress to tax the oil and chemical industries to fund clean-up of previously polluted sites (link).  The American Chemistry Council strongly opposes these taxes which could cost the industry $600mn (link).
  • Global supply chain disruptions may maintain, or even add to, regional petrochemical imbalances, writes ICIS (link).