Covestro, Wacker, Fuchs, Akzo Nobel, EMS-Chemie most exposed to China - UBS

Fuchs Se

04/10/2021 12:08

** Chinese power restrictions are likely to influence Q4
earnings for the chemicals sector worldwide, UBS says, with
Covestro  1COV.DE , Wacker Chemie  WCHG.DE , Fuchs  EMSN.S ,
Akzo Nobel  AKZO.AS  and EMSChemie  FPE3_p.DE  being most
exposed to China among the European stocks
    ** These are the top 5 companies in terms of percentage of
group sales to China - UBS 
    ** "A power shortage in China would clearly pose a direct
risk to production (volumes) in the region for some European
Chemicals companies," the brokerage says
    ** UBS adds that the direct impact could be mitigated  by
supplying China from other regions, but  most likely at the
expense of margin compression due to elevated shipping rates 
    ** According to the broker, due to coal shortage, the
industrial power usage might be reduced by 10-15% in Nov/Dec
translating to a 30% slowdown among energy-intensive industries
such as chemicals 
    

 (Reporting by Tommy Lund)
 ((Tommyalexander.lund@thomsonreuters.com))