Bob Patel, CEO of LyondellBasell takes stock of the company's commercial situation with particular attention to the situation linked to the coronavirus and the problems of global mobility. As can be read from its conclusions of the 2020 activities, through the official company note, we can see a petrochemical market in good health and a particular attention to the plastic sector, as the refining sector, which produces fuels, will remain under pressure.

"In the third quarter, the demand for products LyondellBasell has improved as global economic activity increases.

Our year-over-year results reflect strong global volumes while margins are still rising, as a result, third quarter volumes and margins have improved for the most part of our business.

Strong demand for polyethylene in North America and Asia and hurricane-related production constraints on the US Gulf Coast have led to tight markets which pushed $ 420 per ton the improvement in the prices of North American polyethylene contracts since June.

The volumes in our propylene oxide and derivatives business and in our Advanced Polymer Solutions segment have improved with the increased demand for polymers used in production automotive and other durable goods markets.

As expected, the reduced demand for transportation fuels continued to put pressure on our refining and oxyfuel and related products operations during the quarter, " said Bob Patel, CEO of LyondellBasell .

"We have continued our disciplined growth strategy by extending our global network and reaffirming our commitments to building innovative and sustainable business models for our industry.

The creation and launch of our new integrated cracker joint venture with Bora in China is another example of our proven model of a joint venture that allows us to obtain rapid returns from an efficient investment in the world's fastest growing market.

In September, we released our annual sustainability report to provide more details on our company's progress and discuss our substantial and ambitious goals for the next decade, "Patel said.

PERSPECTIVE

"The recovery in global economies should continue to benefit the petrochemical industry. Despite the existence of both the pandemic and the recession, we expect the global demand for polyethylene will grow for the full year.

China continues to have a 40% polyethylene trade deficit which supports North American exports by tightening the US domestic market .

We expect the margins of North American Integrated Polyethylene to be maintained during the fourth quarter, perhaps with some seasonal moderation by the end of the year.

The stubbornly slow recovery of global mobility is weighing on the demand for gasoline and jet fuel which will prolong the negative situation for our activities refining and oxyfuel and related products.

Our orders show increased demand from automotive manufacturing and other durable goods markets which should continue to push further improvement for our Advanced Polymer segment Solutions ".

"After several years of advancing our value-oriented growth strategy, LyondellBasell is ready to reap the rewards of our investments as our industry benefits from a economy in recovery.

In October, we announced a new integrated polyethylene joint venture with Sasol in Louisiana. This partnership represents another measured approach to extend one of our core businesses and increase cash flow.

Our new Hyperzone polyethylene capacity, several expansions through our joint venture network and the integration of our acquisition of A. Schulman should add to LyondellBasell's growing cash flow over the next few years.