US chem shares fall with oil prices

Juhi Varma

06-May-2020

HOUSTON (ICIS)–US-listed shares of chemical companies fell on Wednesday as oil prices declined.

Prices for petrochemicals tend to rise and fall with those for oil. In addition, chemical producers in the US tend to lose their cost advantage when oil prices fall in relation to gas-based feedstock.

The table below shows oil prices.

6-May 5-May %
Brent 29.72 30.97 -4.0
WTI 23.99 24.56 -2.3

The table below shows the US-listed shares covered by ICIS.

$ Current

Price

$ Change % Change
AdvanSix 11.30 -0.91 -7.45
Axalta Coating Systems 18.45 -0.85 -4.40
Braskem 7.11 -0.31 -4.18
Celanese 77.58 -0.43 -0.55
Dow 31.96 -1.41 -4.23
DuPont 44.04 -0.65 -1.45
Eastman 59.53 -0.58 -0.96
HB Fuller 34.13 -0.46 -1.33
Huntsman 14.65 -0.71 -4.62
Ingevity 45.29 -1.31 -2.81
Kraton 13.78 -0.78 -5.36
Kronos Worldwide 9.19 0.02 0.22
LyondellBasell 52.11 -2.74 -5.00
Methanex 14.58 -0.19 -1.29
NewMarket 418.25 0.37 0.09
Olin 10.74 -0.83 -7.17
PolyOne 21.50 -0.59 -2.67
PPG 88.80 0.53 0.60
RPM International 66.45 -0.24 -0.36
Sherwin-Williams 524.02 -8.67 -1.63
Stepan 92.98 1.10 1.20
Chemours 12.32 0.14 1.15
Trinseo 18.01 -0.30 -1.64
Tronox 6.89 0.08 1.17
Univar 13.22 -0.40 -2.94
Venator Materials 1.39 0.12 9.45
Westlake Chemical 39.61 -3.14 -7.35

Among the gainers, shares of Venator Materials rose after the company released its Q1 earnings. Operating income rose year on year.

Shares of Chemours also rose after it reported a rise in Q1 income.

Other companies releasing earnings include Methanex, Axalta Coating Systems and Occidental Petroleum.

Methanex warned that demand for methanol could drop further in the second quarter.

Axalta said April and May sales volumes are projected down 50% year on year because of the coronavirus.

Chemical shares performed worse than the general market, as shown in the following table.

6-May Change %
Dow Jones Industrial Average 23,664.64 -218.45 -0.91
S&P 500 2,848.42 -20.02 -0.70
Dow Jones US Chemicals Index 515.91 -7.45 -1.42
S&P 500 Chemicals Industry Index 520.71 -7.44 -1.41

In Europe, chemical stocks fell slightly.

In Asia, chemical shares were mixed.

Additional reporting by Anna Matherne and Stefan Baumgarten, Tom Brown 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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