Sell-off hits US chem shares in worst day since March

Author: Al Greenwood

2020/06/11

HOUSTON (ICIS)--US-listed shares of chemical companies fell sharply on Thursday in their worst day since the sell-off in stock markets in March, amid worries that the nation faces a second wave of coronavirus infections.

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

$ Current
Price
$ Change % Change
AdvanSix 12.10 -2.28 -15.86
Axalta Coating Systems 21.68 -1.79 -7.63
Braskem 10.18 -0.70 -6.43
Celanese 85.51 -9.06 -9.58
Dow 39.27 -4.32 -9.90
DuPont 49.69 -4.00 -7.44
Eastman 66.53 -9.11 -12.04
HB Fuller 37.76 -4.22 -10.05
Huntsman 17.79 -1.37 -7.15
Ingevity 48.33 -6.12 -11.24
Kraton 14.77 -2.51 -14.50
Kronos Worldwide 9.45 -0.95 -9.13
LyondellBasell 63.81 -9.77 -13.27
Methanex 19.70 -2.42 -10.92
NewMarket 398.48 -35.57 -8.19
Olin 12.78 -0.62 -4.63
PolyOne 25.08 -2.28 -8.33
PPG 99.34 -9.70 -8.90
RPM International 71.86 -7.36 -9.29
Sherwin-Williams 546.28 -34.68 -5.97
Stepan 93.34 -6.08 -6.12
Chemours 13.65 -2.41 -14.98
Trinseo 20.48 -3.06 -13.00
Tronox 6.78 -1.19 -14.94
Univar 15.76 -1.54 -8.90
Venator Materials 1.82 -0.26 -12.50
Westlake Chemical 51.38 -3.82 -6.91

The performance was comparable with 18 March.

The general stock market also logged its steepest declines since March, as shown in the table below.

11-Jun Change %
Dow Jones Industrial Average 25,128.17 -1,861.82 -6.90
S&P 500 3,002.10 -188.04 -5.89
Dow Jones US Chemicals Index 567.89 -50.50 -8.17
S&P 500 Chemicals Industry Index 570.38 -48.91 -7.90

Oil prices also fell sharply, as shown in the following table.

11-Jun 10-Jun %
Brent 38.55 41.73 -7.62
WTI 36.34 39.60 -8.23

The declines in oil and stock markets came amid signs that the number of cases are growing in individual US states, while they continue to loosen work and travel restrictions.

The Associated Press reported that hospitals in the state of Arizona have been told to prepare for the worse. The state of Texas is sending more people to the hospital for coronavirus than ever before.

Johns Hopkins University shows that the three-day moving average of new infections is becoming more pronounced in several US states.

The number of cases in the US is approaching 2m, according to the US Centers for Disease Control and Prevention (CDC). Fatalities exceed 110,000, making the disease deadlier than recent bouts of influenza.

Worries about the coronavirus overwhelmed the weekly jobless report from the US Department of Labor. During the week that ended on 6 June, jobless claims reached 1.54m, down by 355,000 from the previous week.

In Europe, chemical stocks also suffered heavy losses.

The industrialised nations club OCDE published one of the most pessimist forecasts yet for this year.

The European Stoxx 600 index, with 30 chemicals listed firms, was down nearly 4% approaching the closing of the session.

In Asia, chemical stocks also fell.

Focus article by Al Greenwood
Thumbnail image by Shutterstock
Additional reporting by Jonathan Lopez and Nurluqman Suratman
Click here to view the ICIS Coronavirus, oil price crash - impact on chemicals topic page.

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