06 February 2002 10:34 [Source: ICIS news]
LONDON (CNI)--UK specialty chemicals company Elementis suffered a further sharp fall in its stock market value on Wednesday following fears that possible US restrictions on the use of chromated copper arsenate (CCA) as a wood preservative will hit its sales of chromium chemicals.
Elementis shares were down 9.5% at 33 pence on the London Stock Exchange (LSE) at about 10:05 hours GMT. This was close to a 52-week low.
In a statement issued on Tuesday, when the company's shares fell some 10%, Elementis said global and US demand for chromium chemicals could be cut by around 5% and 30% respectively if the restrictions are implemented. It estimated that its own global sales of chromium could, over a period of time, be adversely affected by up to 15%.
Elementis supplies chromic acid which is used in the manufacture of CCA and acts primarily as a binding agent.
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