Pre-Trading Thoughts

Cabinet announced yesterday a new gas pricing formula for cement and petchem producers, whereby: Cement producers will pay USD12/mmbtu, which will impact only SVCE since it is the sole local producer that is still using gas. The rest use coal and petcoke mainly. It is notable that coal, at current prices, is equivalent to USD17/MMBtu in gas prices. The formula for petchem producers for the production of ethane/propane mix will be: 20%*ICIS average monthly commodity price/50, with floor cost o...