Factbox: Sasol reverses earnings expectations of Louisiana petchem complex

Sasol has reversed its fiscal 2020 earnings expectations from its vastly expanded Louisiana petrochemical complex to a $50 million-$100 million loss in EBITDA,, from a gain of the same amount, as the global coronavirus pandemic weakened demand and battered oil prices in 2020, the company said this week.

Sasol is continuing its search for partners to buy stakes in several new units at the complex, including a new 1.5 million mt/year cracker and two new polyethylene units, as part of an effort to raise $6 billion by 2021 and shore up its finances, it in a business update.

The expected loss in EBITDA reflects lower polymer prices seen across the industry, as shutdowns in response to the coronavirus squeeze economic activity and siphon demand.

INFRASTRUCTURE

**Sasol expects the new 420,000 mt/year LDPE plant at its Lake Charles, Louisiana, complex to come online in the third quarter this year after finishing repairs from fire damage sustained in January during commissioning.

**Sasol expects a 173,000 mt/year Ziegler alcohols and a 30,000 mt/year Guerbet alcohols facility at its Lake Charles, Louisiana, complex to start up in late June.

**Coca-Cola has seen sales volumes decline by about 25% since early April as cancellations of concerts, conferences and sports events amid responses to the coronavirus pandemic led consumers to buy fewer bottled drinks overall, and shift to purchases at grocery stores and then online.

**DuPont idled production at manufacturing sites and deferred some capital investments to address global economic strain and uncertainty stemming from the pandemic.

**PBF Energy declared force majeure Wednesday on toluene and mixed xylenes produced at its Toledo, Ohio, refinery, according to a customer letter obtained by S&P Global Platts.

**Specialty polymer producer and resin distributor PolyOne has seen April orders decline by 15% year on year due to lower automotive demand and less discretionary consumer spending amid shutdowns and other fallout from the pandemic.

**Chile may temporarily eliminate a ban on single-use plastic bags at supermarkets and commercial places during coronavirus pandemic-related shutdowns, according to Environment Minister Carolina Schmidt.

PRICES

Olefins

**US non-LST ethane rose 5.7% on the day Friday to 16.125 cents/gal.

**US spot April ethylene rose 0.125 cent on the week to finish Friday at 8.875 cents/lb Mont Belvieu, and up 1.125 cents/lb to 9 cents/lb FD Choctaw.

**US non-LST propane gained 25 points to 35.50 cents/gal on Friday.

**US spot polymer-grade propylene for April rose 0.75 cent/lb on the week to 25 cents/lb FD USG, while refinery-grade propylene rose 4.5 cents on the week to finish Friday at 17.5 cents/lb FD USG.

**Spot export MEG prices fell 0.50 cent/lb on the week Friday to 13.5-14.5 cents/lb FOB USG.

**Spot butadiene prices fell 5.25 cents/lb on the week Friday to 13.75 cents/lb CIF USG, down 68% since March 6.

Polymers

**US export ethylene dichloride prices fell to an all-time low this week of $60-$70/mt FOB USG, the lowest level since S&P Global Platts began assessing it in June 1996.

**US export PVC prices fell $60/mt to $550/mt FAS Houston.

**ExxonMobil lowered HDPE and LLDPE pricing by 2 cents/lb effective April 1 in response to domestic and global market changes and to limit coronavirus pandemic impact.

**US import PET prices were flat this week at 39-40 cents/lb ($866-$888/mt), as were US domestic PET prices at 49-50 cents/lb ($1,080-$1,102/mt) with stable feedstock prices.

**US homopolymer and copolymer PP prices fell $121/mt to $860/mt and $904/mt FAS Houston, respectively.

**US HDPE blowmolding pricing fell $22 on the week at $596-$618/mt (27-28 cents/lb) FAS Houston.

**US LLDPE butene was flat on the week at $574-$596/mt (26-27 cents/lb) FAS Houston.

**US LDPE prices fell $22 on the week to be assessed at $860-$882/mt (39-40 cents/lb) FAS Houston

**US domestic acrylonitrile-butadiene-styrene prices fell 1 cent to 73-74 cents/lb delivered.

**Latin American LLDPE prices fell $10/mt this week to $705-$715/mt CFR WCSA and $700-$720/mt CFR Brazil.

**Latin American LDPE prices fell $10/mt this week to $955-$965/mt WCSA and $950-$970/mt CFR Brazil.

**Latin American HDPE film prices fell $20/mt this week to $725-$735/mt CFR WCSA and $730-$750/mt CFR Brazil.

**Latin American PP homopolymer prices fell $40/mt this week to $845-$855/mt while copolymer prices fell $50/mt to $925-$935/mt, both CFR WCSA.

**Latin American CFR Brazil PP prices for both homopolymer and copolymer fell $30/mt to $860-$880/mt and $910-$93/mt, respectively.

**Latin American PVC prices fell$55/mt this week to $610-$620/mt CFR WCSA and down $30/mt to $685-$695/mt CFR Brazil.

**US acrylonitrile prices fell $65/mt to $850/mt FOB USG.

**US acetic acid prices were flat at $485/mt FOB USG, while vinyl acetate monomer prices fell $5/mt to $820/mt FOB USG.

**Export 2-EH prices fell $5/mt to $650/mt FOB USG.

**Export NBA prices fell $10/mt to $500/mt FOB USG.

**Post-consumer FOB Los Angeles bottle bales for both premium and curbside grades were steady Friday at 19 cent/lb and 9 cents/lb, respectively, while the FOB Chicago marker rose 1 cent to 8 cents/lb.

Aromatics

**US paraxylene prices fell $105/mt on the week, more than 20% since Tuesday, to finish Friday to $390/mt FOB USG on long supply, tepid demand and a backlog at some Chinese ports.

**US IPA prices were assessed down $580/mt to $3,280/mt FOB USG.

**US April benzene prices fell 9 cents/gal on Friday to 80 cents/gal DDP USG, while May benzene fell 1 cent to 89 cents/gal DDP USG.

**April and May styrene monomer were assessed flat on the day Friday at $435/mt FOB USG.

**US MTBE prices rose 9.30 cents/gal on Friday to 65.50 cents/gal FOB USG.

**US methanol prices were flat on Friday at 63.50 cents/gal FOB USG.

**April nitration-grade toluene fell 5 cents on the week Friday to 96 cents/gal.

**April mixed xylenes prices fell 1 cent week on week Friday to 106 cents/gal.

**USGC light straight-run naphtha prices fell 12.9% on the day Friday to 31.13 cents/gal.

**NYMEX May RBOB prices settled up 1.76 cents/gal on Friday at 66.12 cents/gal.

**US orthoxylene prices fell 0.25 cent on the week Friday to 21.25 cents/lb.

**US export caustic soda prices rose $15/dmt to $235-$245/dmt FOB USG this week.

**Latin toluene prices fell $15/mt on the week Friday to $242/mt FOB Brazil.

**Latin mixed xylenes prices were down $3/mt week on week at $271/mt FOB Brazil.

**Latin benzene prices fell $66/mt on the week Friday to $218/mt FOB Brazil.

TRADE FLOWS

**Union Pacific expects fallout from the coronavirus pandemic to reduce volumes shipped by 25% in the second quarter, including lower plastics shipments as resin production declines, executives said during the company's first-quarter earnings call this week.

**US seaborne imports fell 8.7% year over year in the first half of April, including a 13% reduction in flows from China, a slower decline rate than 34% seen in March, according to Panjiva, the trade analysis unit of S&P Global Market Intelligence.