- Sasol’s spot earnings continue to move higher and spot headline earnings for FY22 is at R57.64/share. Oil prices and refining margins increased in the week. Petrol cracks have increased to more than $11/bbl, but diesel remains weak at $6/bbl.
- Around 36% of the spot earnings upside are derived from chemical prices and we highlight the recent increases in ammonia prices as a key contributor to higher spot earnings. Asian monomer prices were flat to lower and only LLDPE prices increased. US chemical prices were flat in the week.
Global chemical news
- Petrochina plans to start up two ethane crackers with a combined capacity of 1.4mn tons in the second half of the year. Both these crackers will feed polyethylene plants. This will follow on the strat up of a 1.25mn ton cracker in Jaingsu, last month (link).
- European chemical producers could see a significant increase in carbon costs to around €1,5bn in 2021 as free allowances decline and carbon costs increase (link).