US chem stocks rise with oil, general market

Al Greenwood

05-May-2020

HOUSTON (ICIS)–Most US-listed shares of chemical companies rose on Tuesday along with oil futures and the general stock market.

The table below shows the performance of the major indices.

5-May Change %
Dow Jones Industrial Average 23,883.09 133.33 0.56
S&P 500 2,868.44 25.70 0.9
Dow Jones US Chemicals Index 523.36 3.81 0.73
S&P 500 Chemicals Industry Index 528.15 3.26 0.62

The table below shows the US-listed chemical companies followed by ICIS.

$ Current
Price
$ Change % Change
AdvanSix 12.29 0.84 7.34
Axalta Coating Systems 19.33 0.20 1.02
Braskem 7.45 -0.29 -3.75
Celanese 78.27 0.43 0.55
Dow 33.49 0.43 1.29
DuPont 44.80 0.08 0.18
Eastman 60.37 -0.28 -0.46
HB Fuller 34.63 -0.16 -0.46
Huntsman 15.45 0.28 1.81
Ingevity 46.87 -0.87 -1.82
Kraton 14.63 0.23 1.60
Kronos Worldwide 9.20 0.24 2.68
LyondellBasell 55.15 0.80 1.47
Methanex 14.80 0.36 2.49
NewMarket 419.76 5.28 1.27
Olin 11.69 -0.31 -2.54
PolyOne 22.24 0.23 1.02
PPG 88.46 1.63 1.87
RPM International 67.01 2.24 3.46
Sherwin-Williams 533.34 4.50 0.85
Stepan 92.45 1.35 1.48
Chemours 12.22 1.31 12.01
Trinseo 18.40 0.35 1.94
Tronox 6.85 0.48 7.46
Univar 13.70 0.22 1.60
Venator Materials 1.26 0.06 5.00
Westlake Chemical 42.92 1.39 3.35

Chemours rose sharply following comments from its former parent company, DuPont.

During an earnings conference call, DuPont said that the two companies could renegotiate their separation agreement, which was the subject of a lawsuit filed by Chemours.

DuPont’s shares fell slightly after the company reported a decline in Q1 earnings.

Coatings and sealants producer RPM International expects a 10-15% year on year sales decline in its fiscal 2020 fourth quarter ending 31 May, it said.

Its share price rose.

In oil markets, prices rose sharply, as shown in the following table.

5-May 4-May %
Brent 30.97 27.20 13.9
WTI 24.56 20.39 20.5

For the chemical industry in general, prices for their products tend to rise and fall with those for oil. For US chemical companies, they enjoy a cost advantage when oil prices rise in relation to ethane and other gas feedstock. The US overwhelmingly relies on gas-based feedstocks.

In Europe, the easing of lock-downs in the region and in the US prompted investors’ optimism on Tuesday, with the index for major chemicals firms up nearly 2% approaching close of business.

In Asia, chemical shares rose as more countries ease lockdown measures to restart their economies.

Additional reporting by Jonathan Lopez and Nurluqman Suratman

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

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