RBC Capital Markets sees dour Q3 for chemical commodity companies

Eastman Chemical Co

11/10/2024 11:38

** RBC Capital Market's earnings expectations for commodity
chemical companies in second half of 2024 have come down further
due to ongoing Europe weakness and unplanned outages through Q3
    ** While businesses and consumer demand could improve on
interest rate cuts, benefits not likely to occur until mid-2025
- Brokerage
    ** Say China announcing largest stimulus package since COVID
has been main driver for higher commodity chemical sentiment,
but benefits yet to be seen
    ** RBC analysts most positive on Chemours  CC.N , but with
titanium dioxide weakness ongoing, delayed HFO rollout has
negatively impacted Thermal & Specialized Solutions segment;
cuts PT to $28 from $35
    ** Cuts PT to $110 from $112 on LyondellBasell  LYB.N ;
expects Q3 impacted by weak refining, Hurricane Beryl and lower
oxyfuels pricing
    ** Cuts PT to $107 from $100 on Eastman Chemicals  EMN.N ,
says "had already built in general end-market weakness and now
properly account for Kingsport and productivity benefits"

 (Reporting by Seher Dareen in Bengaluru)
 ((Seher.Dareen@thomsonreuters.com;))