Chem stocks fall as Dow plunges over 3%

10 October 2018 21:45 Source:ICIS News

HOUSTON (ICIS)--Chemical shares listed on US stock exchanges fell sharply on Wednesday as the Dow Jones Industrial Average dropped by over 3% or over 800 points.

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The index closed at 25,598.74, down 831.83 points or 3.15%. The S&P 500 fell by nearly 95 points. The NASDAQ Composite fell by 4.08%.

The Dow Jones US Chemicals Index closed at 615.52, down by 15.61 points or 2.47%.

The decline followed announcements from two chemical companies that warned about their upcoming earnings, citing trends that could affect other companies with US-listed shares.

On Monday, US paints and coatings company PPG said its adjusted earnings/share to fall year on year because of higher costs for raw materials and logistics.

In addition, overall demand in China has softened, the company said.

Several of PPG's US and European customers are carrying high levels of inventory as a result of lower demand. This is causing weaker automotive-refinish sales, PPG said.

Exchange rates around the world weakened, mainly in emerging economies, and that caused income to fall, the company said.

After PPG's announcement, US-based styrenics producer Trinseo warned that its third-quarter earnings will be below its earlier guidance, because of higher raw-material costs, lower automobile production and uncertainty in China because of ongoing trade negotiations. Trinseo also cited continued weakness in the tyre market.

Both Trinseo and PPG cited higher raw-material costs, and this could weigh on other companies' results during the earnings season.

Unfavourable exchange rates could also drag down earnings, as they did in 2015-2016. US stock markets had two corrections during those years, in which indices fell by more than 10% from their previous highs.

Not all of the companies followed by ICIS fell. US-based pigment producer Tronox was the biggest winner, rising by 5.95%. Other companies that make titanium dioxide (TiO2) also rose as well as several paints and coatings companies.

These increases followed a filing on Tuesday by the activist investor firm Trian, which disclosed a stake in PPG.

Outside of these paint-exposed companies, every US-listed company followed by ICIS fell.

Trinseo fell the most, by nearly 21%, following its after-hours announcement on Tuesday about its earnings.

Pine-chemicals producer Ingevity was the second biggest loser, falling by 8.02%.

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

Name $ Current

Price

$ Change % Change
Tronox Ltd 11.75 0.66 5.95
Venator Materials PLC 8.96 0.35 4.01
Kronos Worldwide Inc 15.89 0.29 1.86
RPM International Inc 59.92 0.68 1.15
Axalta Coating Systems Ltd 26.85 0.27 1.02
PPG Industries Inc 99.51 0.95 0.96
The Chemours Co 35.72 0.2 0.56
Stepan Co 84.58 -0.17 -0.2
Westlake Chemical Corp 80.46 -0.16 -0.2
Huntsman Corp 23.78 -0.25 -1.02
Westlake Chemical Partners LP 24 -0.29 -1.2
DCP Midstream LP 43.04 -0.55 -1.26
Celanese Corp 100.51 -1.49 -1.46
Albemarle Corp 95.77 -1.51 -1.55
Praxair Inc 158.44 -2.74 -1.7
Alerian MLP ETF 10.74 -0.2 -1.78
PBF Energy Inc Class A 50.95 -1.03 -1.98
LyondellBasell Industries NV 97.66 -2.05 -2.06
Cosan Ltd 7.6 -0.17 -2.19
Exxon Mobil Corp 84.59 -1.92 -2.22
Sherwin-Williams Co 414.74 -9.99 -2.35
DowDuPont Inc 59.39 -1.45 -2.38
The Mosaic Co 32.28 -0.82 -2.48
Enterprise Products Partners LP 28.59 -0.74 -2.52
NewMarket Corp 374.67 -10 -2.6
Valvoline Inc 19.57 -0.53 -2.64
Eastman Chemical Co 84.46 -2.35 -2.71
Olin Corp 23.43 -0.66 -2.74
Ecolab Inc 150.7 -4.26 -2.75
Braskem SA ADR repr Class A 28.35 -0.82 -2.81
AdvanSix Inc 31.72 -0.98 -3
FMC Corp 84.32 -2.67 -3.07
H.B. Fuller Co 47.23 -1.56 -3.2
Marathon Petroleum Corp 81.02 -2.74 -3.27
Ashland Global Holdings Inc 77.11 -2.62 -3.29
Bunge Ltd 67.45 -2.47 -3.53
Calumet Specialty Products Partners LP 6 -0.23 -3.69
Ecopetrol SA ADR 25.74 -1 -3.74
W R Grace & Co 68.29 -2.65 -3.74
Phillips 66 113.06 -4.63 -3.93
Valero Energy Corp 111.02 -4.64 -4.01
Sociedad Quimica Y Minera De Chile SA ADR 42.84 -1.88 -4.2
Nutrien Ltd 54.92 -2.66 -4.62
PolyOne Corp 37.88 -1.91 -4.8
Platform Specialty Products Corp 11.06 -0.6 -5.11
Occidental Petroleum Corp 77.93 -4.3 -5.23
Petroleo Brasileiro SA Petrobras ADR 15.14 -0.95 -5.88
Ultrapar Participacoes SA ADR 11.03 -0.69 -5.89
Methanex Corp 74.71 -5.54 -6.9
Cabot Corp 57.03 -4.36 -7.1
PQ Group Holdings Inc 15.56 -1.25 -7.44
Kraton Corp 38.04 -3.15 -7.65
CF Industries Holdings Inc 50.6 -4.22 -7.69
Ingevity Corp 86.5 -7.54 -8.02
Trinseo SA 60.25 -15.9 -20.88

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By Al Greenwood