Sasol Form 20-F for the year ended 30 June 2021 - Book - Page 44
channels can be divided into the following main areas
per segment:
Seasonality
Sales volumes of our products are generally
not subject to seasonal fluctuations but tend to follow
broader global industry trends and are therefore
impacted by macroeconomic factors. Sasol operates
globally and in many diverse markets, and accordingly,
no element of seasonality is likely to be material to the
results of Sasol as a whole. For further information
regarding cyclicality, prices and demand, refer to
“Item 3.D—Risk factors”.
In Chemicals Africa, Advanced Materials
consists of cobalt catalyst and carbon sold
largely to international markets. Base
Chemicals produces polymers, fertilizers
and explosives, phenolics, methanol and
some other products which are sold
mainly to customers in South Africa with
the exception of polypropylene and
phenolics which are mainly exported.
Explosives intermediates are sold to our
partner Enaex which converts these to
final products for supply to the SubSaharan Africa mining industry. Essential
Care exports the South African-produced
C6+ alcohols to international markets for
external sales or internal use in surfactant
facilities across the globe. Performance
Solutions’ products include Fisher
Tropsch-based and paraffin wax, solvents
and comonomers which are substantially
exported to international markets for
external sales.
In Chemicals America, Advanced
Materials consists of alumina sold largely
within North America with some exports
to Europe and Asia. For Base Chemicals,
polyethylene is produced and marketed on
behalf of Sasol by our joint venture
partner LyondellBasell. The produced
ethylene is either consumed internally for
derivatives or sold to external customers
in the US merchant market. MEG is
marketed and distributed on behalf of
Sasol by another third party. Phenolics are
largely exported to international markets.
Essential Care includes surfactants, EO,
C6+ alcohols, LAB and paraffins and
Performance Solutions includes the sale
of comonomers, speciality parrafins and
speciality alcohols mainly within the
Americas region, with some sales to
Europe and Asia.
In Chemicals Eurasia, Advanced
Materials includes sales of alumina
mainly within Europe with some sales in
other regions including the Americas and
Asia. Essential Care consists of
surfactants, EO, C6+ alcohols, LAB and
paraffins sales mainly within Eurasia with
Raw materials
In the Southern Africa value chain, the main
feedstock components for the production of fuels and
chemical products are coal obtained from our Mining
segment, natural gas obtained from our Gas segment
and crude oil purchased from external suppliers.
In our Chemicals business, outside of Southern
Africa, the main feedstocks used are kerosene, benzene,
ethane, ethylene, oleochemicals, slack wax and
aluminium. Feedstocks are purchased externally, with
the exception of a portion of ethylene which is
produced at our Lake Charles facility and the
Fischer-Tropsch-based feedstock used for our South
African polymer, solvents, alcohol, wax, ammonia,
phenolics, and co-monomer production. The pricing of
most of these raw materials follow global market
dynamics which relate to crude oil and energy prices.
Marketing channels and principal markets
In our Mining and Gas segments, we make use
of direct sales models, long-term marketing gas sales
agreements and short-term crude oil sale and purchase
agreements. Piped gas is sold to wholesalers and endusers in South Africa; and electricity is sold to
Electricidade de Moçambique (EDM) in Mozambique.
In our Fuels segment, marketing channels can
be divided into the following main areas:
liquid fuel sales to licensed wholesalers;
and
liquid fuels sales to retailers and end-users
and liquid fuels overland exports into
other parts of Southern Africa.
In our Chemicals segments, our products are
sold to customers worldwide with a significant part
under annual and multi-year contracts. Marketing
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