Credit Suisse sees end consumption weakening for chemical makers

Cabot

03/07/2023 14:07

** Credit Suisse cuts PTs on chemical makers as brokerage
views "continued supply chain contractions" affecting demand
    ** Many chemicals companies are pointing to continued
customer inventory reductions, which implies that end demand may
also be declining - Credit Suisse
    ** Companies are reporting smaller order sizes, also a sign
of weakening end consumption, says brokerage
    ** "Durables (non-auto) and hydrocarbon-based chemicals
appear common areas of weakness" - Credit Suisse
    ** Consumer (non-food), electronic chemicals and industrial
gases appear better, but not immune
    
 Company         Current PT           Previous PT
 Dow  DOW.N      $65                  $70
 LyondellBasell  $110                 $112
 Industries                           
  LYB.N                               
 Cabot  CBT.N    $85                  $91
 International   $110                 $115
 Flavors &                            
 Fragrances                           
  IFF.N                               
 Ashland         $110                 $122
  ASH.N                               
 
    
    

 (Reporting by Tanay Dhumal in Bengaluru)
 ((Tanay.Dhumal@thomsonreuters.com; 
Twitter: https://twitter.com/TanayDhumal))