US chem shares fall despite oil amid Q1 earnings
HOUSTON (ICIS)–US-listed shares of many chemical producers fell on Thursday despite a rise in oil prices following a busy day for earnings.
In response to low demand, Dow plans to idle two polyethylene (PE) plants in the US, one PE plant in Argentina and two elastomer plants in the US. The shutdown should last for at least 30 days.
The table below shows the US-listed companies followed by ICIS.
|$ Change||% Change|
|Axalta Coating Systems||19.74||-0.06||-0.30|
The general stock markets also fell, as shown in the table below.
|Dow Jones Industrial Average||24,345.72||-288.14||-1.17|
|Dow Jones US Chemicals Index||535.29||-15.33||-2.78|
|S&P 500 Chemicals Industry Index||539.40||-14.06||-2.54|
The indices fell after the US Department of Labor reported that jobless claims reached 3.84m for the week ending on 25 April.
In oil markets, futures rose as a new supply-cut agreement is scheduled to take effect on 1 May among OPEC and its allies.
In chemical markets, the US May benzene contract price fell by more than 20%.
US May butadiene (BD) contracts fell as demand remained low from tyre producers.
Dow is seeking April price decreases for PE.
BASF also reported on Thursday its Q1 results issuing a very sombre guidance for Q2.
In Asia, chemical shares rose with oil prices.
Japan’s industrial output fell to its lowest since January 2013 in March 2020 on coronavirus-related disruptions at factories and poor overseas demand.
China’s official manufacturing purchasing managers’ index (PMI) dipped to 50.8 in April from 52.0 in March, the National Bureau of Statistics (NBS) said.
The April PMI reading is above the 50.0 mark which indicates expansion in the manufacturing economy.
Focus article by Al Greenwood
Additional reporting by Morgan Condon and Nurluqman Suratman
Visit the ICIS coronavirus topic page for analysis of the impact on chemical markets and links to latest news.
Speak with ICIS
Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.
Want to learn about how we can work together to bring you actionable insight and support your business decisions?