US chem shares lessen losses after Trump speech excludes China trade

Author: Al Greenwood

2020/05/29

HOUSTON (ICIS)--US-listed shares of chemical companies rose off of their lows on Friday after a speech by US President Donald Trump made no mention of tariffs or the country's phase-one trade deal with China - even though he criticised other aspects of Chinese policy.

General stock markets also recovered from their earlier lows following the president's speech.

The table below shows the indices followed by ICIS.

29-May Change %
Dow Jones Industrial Average 25,383.11 -17.53 -0.07
S&P 500 3,044.31 14.58 0.48
Dow Jones US Chemicals Index 581.51 1.46 0.25
S&P 500 Chemicals Industry Index 587.07 2.16 0.37

The table below shows the US-listed chemical stocks followed by ICIS. While they rose from their lows from the day, most chemical shares still posted losses.

$ Current

Price

$ Change % Change
AdvanSix 11.85 -0.38 -3.11
Axalta Coating Systems 23.18 -0.15 -0.62
Braskem 10.36 -0.44 -4.07
Celanese 90.13 -2.21 -2.39
Dow 38.67 -0.05 -0.12
DuPont 50.66 0.16 0.32
Eastman 67.99 -0.47 -0.68
HB Fuller 37.72 -0.79 -2.05
Huntsman 18.16 -0.04 -0.19
Ingevity 52.56 -0.98 -1.83
Kraton 15.21 -0.76 -4.76
Kronos Worldwide 9.79 -0.22 -2.2
LyondellBasell 63.71 -0.69 -1.07
Methanex 16.11 -0.92 -5.4
NewMarket 433.26 -3.7 -0.85
Olin 12.05 0.09 0.71
PolyOne 24.85 0.1 0.4
PPG 102.04 -0.6 -0.58
RPM International 74.78 0.53 0.71
Sherwin-Williams 594.35 4.34 0.74
Stepan 97.35 -1.79 -1.81
Chemours 13.13 -0.47 -3.46
Trinseo 20.6 -0.03 -0.15
Tronox 6.67 -0.44 -6.13
Univar 15.42 -0.05 -0.32
Venator Materials 1.33 -0.12 -8.28
Westlake Chemical 47.71 0.01 0.01

While Trump did not discuss tariffs or trade deals, he did bring up earlier trade grievances. He also accused China of covering up the spread of the coronavirus.

Regarding Hong Kong, the US will follow up on its declaration of the city no longer being sufficiently autonomous from China to warrant special treatment, Trump said. Those provisions included an extradition treaty, export controls, dual-use technologies and more.

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

28-May 27-May %
Brent 35.33 35.29 0.11
WTI 35.49 33.71 5.28

INEOS Styrolution is seeking June increases for polystyrene (PS) prices.

US June benzene contract prices rose slightly.

In Europe, chemical stock prices fell.

Asian chemical shares also fell.

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

Click here to view related stories and content on the ICIS US-China trade war topic page.