• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Biocides Market Outlook - 2027

    Lab & Testing Equipment Directory

    Aerospace Coatings

    Resins Update

    Coatings World Q&A: Eileen Weber of allnex
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Raw Materials & Equipment
    Video Bites
    Suppliers News
    Live From Shows
    Top News
    What Are You Reading?

    Teknos Receives EcoVadis Gold Medal for Sustainability Performance

    AkzoNobel and Partners Team Up to Hack Carbon Reduction Challenges

    Five PPG Facilities in Ohio Recognized for Sustainability, Health, Safety Practices

    Award for Sustainability: Evonik Receives EcoVadis Platinum Rating Again
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    PPG Launches HOMAX TEX>>PRO Texture System by PPG

    New Digital Solution from Interpon Helps Customers Bring Colors to Life

    Benjamin Moore Receives Two J.D. Power Awards

    Jamestown Coating Technologies Acquires Yenkin-Majestic Industrial Paint Business

    New Appointment for AkzoNobel Industrial Coatings
    Additives
    Binders
    Pigments
    Solvents

    DIC’s Indian Subsidiary Begins Construction of Coating Resins Production Facility

    Celanese Declares Force Majeure on Acetyl Chain and Acetate Tow Products

    Perstorp Group to be Acquired by PETRONAS Chemicals Group

    Birla Carbon to Increase North American Prices

    OQ Chemicals Announces Price Increases for Oxo Intermediates in the Americas
    Company Capabilities
    Buyers Guide
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Clariant Additives

    W. R. Grace & Co.

    Siltech Corporation

    Pilot Chemical Company

    Active Minerals
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Utech Las Americas 2022

    CPCA Annual Conference

    PAINTINDIA 2022 Exhibition

    Southern Society for Coatings Technology Annual Meeting and Technical Conference

    UTECH Middle East/Africa Foam & Polyurethane Expo
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Clariant Additives

    W. R. Grace & Co.

    Siltech Corporation

    Pilot Chemical Company

    Active Minerals
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • India/Asia Pacific Report
      • China Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Expert's Opinion

    Analyst Insight on Hurricane Harvey Impact on Chemical Stocks

    Hurricane Harvey's potential impact on commodity chemicals

    Analyst Insight on Hurricane Harvey Impact on Chemical Stocks
    Related CONTENT
    • CoatingsPro Magazine Opens 2018 Contractor Awards Program
    • Dangerous Goods Symposium Set for September 6-8
    • Abrafati 2017: Coatings Industry Leading Event in Latin America To Be Held in São Paulo
    • Analyst is Cautiously Optimistic in 2Q17 Chemicals Sector Earnings Preview
    • Dunleary Announces Acquisition of D. N. Lukens and D & F Distributing
    08.25.17
    Chemicals
    Hurricane Trade Winds

    • Category-2 Hurricane Harvey bears down on US Gulf Coast. Given the concentration of commodity chemical assets on the US Gulf Coast, we have written many hurricane-related research notes in our career. Fortunately, we have not been compelled to do so since 2008, when Hurricane Ike hit Texas as a high category-2 storm. Our first thoughts are always about the safety of people in the path of the storm. That said, with Harvey having strengthened rapidly yesterday, we take this opportunity to consider what this potentially devastating event could mean for chemical stocks in the days to come. Recognizing many uncertainties ahead of landfall this evening, we offer in Table 1 our preliminary assessment of risk and opportunity, purely from a stock perspective. The potential for impact remains fluid at this stage, so we will need to continue to assess market developments in coming days.

    • It’s not the wind, it’s the humidity. By way of background, petrochemical plants are engineered to withstand hurricane force winds, so direct wind damage to plants is more the exception than the rule. In our experience, the primary risk tends to be...

    • Supply restriction often leads to upward tension in commodity prices. At this writing we see the greatest potential for a boost to chlor-alkali and vinyls (CAV), where pre-hurricane market conditions have been supportive of ongoing price increases in caustic soda and nascent momentum in chlorine. As demand for chlorine tends to ebb seasonally at this time of year, supply of co-product caustic soda can be restricted, even in “normal” market conditions. Now, Hurricane Harvey has forced the temporary shutdown of at least two sites – OXY at Ingleside, Texas and...

    • Specialty chemical effects tend to be neutral or marginally negative. Nearly one-third of US crude oil refining capacity lies in the “cone” of Harvey’s potential path. In this context, we expect...

    • Our preferred way to play is Westlake. Among stocks in our coverage, our preliminary view is that Buy-rated Westlake Chemical (WLK) could benefit most given competitors’ outages in nearly all of Westlake’s major product lines: ethylene, polyethylene (PE) resin, chlor-alkali and PVC resin.  We note that Westlake’s own assets are located in Lake Charles and points east in Louisiana as well as Kentucky and Europe. While Lake Charles could be affected in certain scenarios, our current read is that assets there are likely to continue to run.

    • Overall, we remain Market Weight on US Chemicals exposure, albeit with a healthy appetite for risk. Within the chemicals sector we continue to prefer value vs. growth, preferably with a catalyst. Notwithstanding the strong performance of most commodity-linked chemical stocks YTD, our bottom-up work on cash flow and valuation leads us to believe that exposure here remains attractive, whether through pure-play or diversified chemical names. Our Buys of this ilk are DOW, EMN, HUN and WLK having shifted CE down a notch to Hold in July. Among growth-oriented specialty chemical producers, the pickings are slimmer in our opinion, although we did launch on WR Grace in May 2017 with a Buy and have since become (even) more constructive. Elsewhere among specialties we’ve shifted to a less bearish, although still not constructive posture on industrial gases having upgraded Air Products to Hold from Sell in early August. For the first time in nearly six years, we consider coatings and gases to be on equal footing in terms of risk-reward, as the former group struggles to defend margins.

    (Please see full report for details)
    Related Searches
    • chemical
    • industrial
    • dow
    • coatings
    Related Knowledge Center
    • Market Trends & Forecast
    • Business Operation
    Suggested For You
    CoatingsPro Magazine Opens 2018 Contractor Awards Program CoatingsPro Magazine Opens 2018 Contractor Awards Program
    Dangerous Goods Symposium Set for September 6-8 Dangerous Goods Symposium Set for September 6-8
    Abrafati 2017: Coatings Industry Leading Event in Latin America To Be Held in São Paulo Abrafati 2017: Coatings Industry Leading Event in Latin America To Be Held in São Paulo
    Analyst is Cautiously Optimistic in 2Q17 Chemicals Sector Earnings Preview Analyst is Cautiously Optimistic in 2Q17 Chemicals Sector Earnings Preview
    Dunleary Announces Acquisition of D. N. Lukens and D & F Distributing Dunleary Announces Acquisition of D. N. Lukens and D & F Distributing
    Specialty Chemical Sales, Inc. Specialty Chemical Sales, Inc.
    CNX Distribution Hires Rick Knubley as Account Manager CNX Distribution Hires Rick Knubley as Account Manager
    Lincoln Fine Ingredients Hires Matt Driver Lincoln Fine Ingredients Hires Matt Driver
    China Coatings Summit and Expo 2017 China Coatings Summit and Expo 2017
    Ethylene Cycle Update; Wave Two of Supply is Building Ethylene Cycle Update; Wave Two of Supply is Building
    Coatings, Silicon-based Technologies and Corrosion Coatings, Silicon-based Technologies and Corrosion
    Chinacoat 2017 Organizers Announces Call for Papers Chinacoat 2017 Organizers Announces Call for Papers
    ECS Conference Preview ECS Conference Preview
    DKSH Returns to European Coatings Show 2017 DKSH Returns to European Coatings Show 2017

    Related Content

    • Breaking News
      CoatingsPro Magazine Opens 2018 Contractor Awards Program

      CoatingsPro Magazine Opens 2018 Contractor Awards Program

      The deadline for nominations is Dec. 1, 2017.
      08.23.17

    • Breaking News

      Dangerous Goods Symposium Set for September 6-8

      ...
      08.10.17

    • Abrafati 2017: Coatings Industry Leading Event in Latin America To Be Held in São Paulo

      Abrafati 2017: Coatings Industry Leading Event in Latin America To Be Held in São Paulo

      ...
      08.09.17


    • Analyst is Cautiously Optimistic in 2Q17 Chemicals Sector Earnings Preview

      Analyst is Cautiously Optimistic in 2Q17 Chemicals Sector Earnings Preview

      ...
      Kevin McCarthy, Chemicals Analysis, Vertical Research Partners 08.07.17

    • Breaking News | Distributor News
      Dunleary Announces Acquisition of D. N. Lukens and D & F Distributing

      Dunleary Announces Acquisition of D. N. Lukens and D & F Distributing

      ...
      07.24.17

      Trending
      • Asian Paints Reports 4Q, Full Fiscal Year 2022 Results
      • Teknos Receives EcoVadis Gold Medal For Sustainability Performance | Coatings World
      • What Are You Reading?
      • Coatings World: What Are You Reading?
      • Vlad Appointed Managing Director of AkzoNobel Industrial Coatings
      Breaking News
      • What Are You Reading?
      • Teknos Receives EcoVadis Gold Medal for Sustainability Performance
      • AkzoNobel and Partners Team Up to Hack Carbon Reduction Challenges
      • Five PPG Facilities in Ohio Recognized for Sustainability, Health, Safety Practices
      • Award for Sustainability: Evonik Receives EcoVadis Platinum Rating Again
      View Breaking News >
      CURRENT ISSUE

      May 2022

      • Biocides Market Outlook - 2027
      • Lab & Testing Equipment Directory
      • Aerospace Coatings Market

      Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
      You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

      • About Us
      • Privacy Policy
      • Terms And Conditions
      • Contact Us

      follow us

      Subscribe
      Nutraceuticals World

      Latest Breaking News From Nutraceuticals World

      GOED Creates Infographic Highlighting Omega-3 Health Claims Approved in Europe
      Kyowa Hakko Appoints Dr. Colin Hill to Immuse Scientific Advisory Board
      Expert Consensus Statement: Diet is Best Primary Intervention to Achieve Diabetes Remission
      Coatings World

      Latest Breaking News From Coatings World

      What Are You Reading?
      Teknos Receives EcoVadis Gold Medal for Sustainability Performance
      AkzoNobel and Partners Team Up to Hack Carbon Reduction Challenges
      Medical Product Outsourcing

      Latest Breaking News From Medical Product Outsourcing

      MPO's Most-Read Stories This Week—May 21
      Iterative Scopes Expands its Senior Leadership Team
      Viz.ai Raises $100 Million in Series D Funding
      Contract Pharma

      Latest Breaking News From Contract Pharma

      Piramal Pharma Solutions New API Plant in Canada Now Online
      MG America Appoints Claudio Radossi as President
      Catalent Invests $175M to Expand Mfg. Capabilities at Winchester, KY
      Beauty Packaging

      Latest Breaking News From Beauty Packaging

      Authentic Beauty Concept Launches Second-Generation ‘Refill Bar’
      HASK Beauty Enters Exclusive Partnership with Amazon
      Garance Doré Launches Made in France Skincare Line
      Happi

      Latest Breaking News From Happi

      P&G Closes HQ Due To Security Threat, Launches New Hair Care Line
      SPF Setting Spray, Lip Contour and Knotless Braids Are Hot Trends: Spate
      Nutrafol Launches Collagen Infusion
      Ink World

      Latest Breaking News From Ink World

      Weekly Recap: Zeller+Gmelin, Sun Chemical and Kornit Top This Week’s News
      Nazdar Celebrates 100 Years with a New Look
      hubergroup Chemicals Exhibits at Paint India for First Time
      Label & Narrow Web

      Latest Breaking News From Label & Narrow Web

      Brook + Whittle's new acquisition, SunDance goes to HP and more
      Specialty announces move to new facility
      Mark Andy hosts dealer's open house in Warsaw
      Nonwovens Industry

      Latest Breaking News From Nonwovens Industry

      Weekly Recap: Kimberly-Clark to Expand Diaper, Wipes Production in Brazil; The Honest Company to Sell Diapers, Wipes at Walmart & More
      3M to Expand in Nebraska
      Nicely Offers Nonwoven Slitters, Winders
      Orthopedic Design & Technology

      Latest Breaking News From Orthopedic Design & Technology

      ODT's Most Read Stories This Week—May 21
      FDA Clears Anika Therapeutics' X-Twist Knotless Fixation System
      Paragon 28 Rolls Out TenoTac 2.0 Hammertoe and Soft Tissue Repair
      Printed Electronics Now

      Latest Breaking News From Printed Electronics Now

      Weekly Recap: Graphene Flagship, Japan Display and LG Display Top This Week’s Stories
      Evonik Launches New Processing Aids for PV Wafer Cutting
      NREL Creates Highest Efficiency 1-Sun Solar Cell

      Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

      AD BLOCKER DETECTED

      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker.


      FREE SUBSCRIPTION Already a subscriber? Login