Half of US chem stocks down at least 50% in '08 - BofA

05 December 2008 19:20  [Source: ICIS news]

TORONTO (ICIS news)--US chemical stocks had a tough 2008 with 16 out of the 30 stocks in Bank of America’s (BofA) basic chemicals index down by 50% or more to date, the bank said on Friday.

“Demand remains dreadful,” the bank said in a research note.

“It’s not getting easier out there as demand appears to have deteriorated further in November versus October,” it said.

This week alone, the bank cut its estimates for one third of the US chemical producers it covers, including Dow Chemical, DuPont, Eastman, NOVA Chemicals and RPM International, it said.

“Some of these companies were simply more proactive than peers in offering updates. Expect more to come,” it added.

US chemical share prices continued to slide on Friday in New York.

By mid-day, all but seven of the 57 chemical, fertilizer and related US shares ICIS news follows were down from Thursday’s closing, with 18 of the shares trading below the $10/share level.

An exception was specialty chemicals and catalysts producer W.R. Grace whose stock rose 12.94% to $5.76.

According to unconfirmed newswire reports the company this week agreed to pay $140m (€111m) to settle an asbestos-related class action lawsuit. Grace media officials were not immdiately available for comment.

($1 = €0.78)

For more on the US chemical producers visit ICIS company intelligence
To discuss issues facing the chemical industry go to
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By: Stefan Baumgarten
+1 713 525 2653

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