US chem shares rise sharply, break from oil prices

Al Greenwood

27-Apr-2020

HOUSTON (ICIS)–US-listed shares of chemical companies rose sharply on Monday, breaking from the drop in oil prices as the prospects grow that the country will re-open following the coronavirus (Covid-19).

In the previous sessions, chemicals shares and oil prices moved in tandem.

Brent futures for June delivery settled at $19.99/bbl, down from $21.44/bbl.

West Texas Intermediate (WTI) for June delivery settled at $12.78/bbl, down from $16.94/bbl.

By contrast, every US-listed company followed by ICIS rose, as shown in the table below.

$ Current
Price
$ Change % Change
AdvanSix 10.55 1.07 11.29
Axalta Coating Systems 19.16 0.71 3.82
Braskem 7.70 0.92 13.57
Celanese 83.13 4.34 5.51
Dow 34.48 1.36 4.09
DuPont 43.87 1.97 4.69
Eastman 59.62 2.35 4.10
HB Fuller 34.44 1.66 5.06
Huntsman 16.37 0.58 3.67
Ingevity 40.38 1.41 3.62
Kraton 10.34 0.53 5.40
Kronos Worldwide 9.29 0.07 0.76
LyondellBasell 52.51 2.46 4.91
Methanex 13.90 0.20 1.46
NewMarket 427.93 15.67 3.80
Olin 15.23 0.84 5.84
PolyOne 22.35 1.10 5.15
PPG 96.19 3.45 3.71
RPM International 67.38 2.33 3.58
Sherwin-Williams 511.76 5.70 1.13
Stepan 94.00 2.97 3.26
Chemours 11.19 0.45 4.14
Trinseo 20.06 1.46 7.85
Tronox 6.63 0.36 5.66
Univar 13.48 1.17 9.50
Venator Materials 1.25 0.07 5.51
Westlake Chemical 42.40 1.70 4.18

The general indices also rose, as shown in the following table.

27-Apr Change %
Dow Jones Industrial Average 24,133.78 358.51 1.51
S&P 500 2,878.48 41.74 1.47
Dow Jones US Chemicals Index 525.42 14.70 2.88
S&P 500 Chemicals Industry Index 528.05 13.02 2.53

Markets rose after the governor of New York outlined the state’s plan to re-open. New York was among the states hardest hit by the coronavirus.

The steps taken to limit the spread of the disease has caused demand for fuel and chemicals to decline, causing prices to drop.

Southern Chemical Corp (SCC) has lowered its May contract price for US methanol by 12 cents/gal from its April price.

Additional reporting by Anna Matherne

Visit the ICIS coronavirus topic page for analysis of the impact on chemical markets and links to latest news.

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