Mat-Chem Notes
Changes to WTR-CMI. Following the completion of Livent’s merger of equals with Allkem, the new company, with the new name Arcadium Lithium plc, is now trading under the symbols ALTM-NYSE and LTM-ASX, and has replaced LTHM in our index. WTR-CMI last week. The S&P 500 appreciated 1.2% last week, while the broader Russell 2000 managed to stay relatively flat, losing 0.3% of its value. Our WTR-CMI Index declined 1.2%, dragged down by double-digit losses in lithium stocks and the continuing decline in the value of synthetic graphite maker EAF. On a positive note, RYAM has seen its value recover 1.5% for the week and 3% YTD, as the effects of customer inventory drawdowns wane and pricing of its cellulosic products strengthens. Global economic slowdown concerns. China’s GDP grew at a disappointing 2-4% in 2023 and is not expected to improve in 2024, putting pressure on global GDP growth and specifically on the US ag market, where China is a major export market. Combined with growing competition from LATAM, the ag-chem market may take longer to deal with its channel inventory issues, possibly explaining the continuing decline in ag-chem stocks like FMC, CTVA, and AVD. Logistics challenges reemerge. With the drought in Panama slowing traffic through the Panama Canal and now with the terrorist attacks against international shipping in the Red Sea, both shipping costs and shipping delays have increased, putting pressure once again on supply chains of everything from grain to auto parts. EV growth slowing? Through the ups and (mostly) downs of the automotive industry the last three years, growth of EVs has been the one constant. That growth engine may now be sputtering too. With the pace of the US uptake of the technology disappointing and even European consumers beginning to question if EVs are the answer, slower EV production may allow metal and battery suppliers to catch up vis-a-vis capacity expansions, but may also extend the time for metal inventory in the supply channel to right-size, possibly resulting in a longer period of lower metal prices. Norway leads the way to the seafloor. The recent announcement by Norway that the country will open its continental shelf to deep-sea mineral exploration underscores the growing realization that meeting global decarbonization goals will require metal resources in quantities simply unavailable on land, with the decision potentially improving the chance of the ISA’s finalization of regulations in mid-2024.
Water Tower Research is built on the foundation of democratizing information flow. We bridge the growing information gap between companies and investors through our investor engagement strategies and open-access research platform.
Our research analysts are Wall Street veterans with the experience and knowledge to work with companies and investors in tandem. We provide access to the information and content that anchors the due diligence process for both professional money managers and individual investors. We leverage traditional research distribution channels and the best of modern digital strategies and tactics to amplify this information flow globally to engage all categories of investors and stakeholders.
Information flow is the foundation for creating investor awareness, knowledge, and engagement. Our mission is to help companies and investors have the tools they need and achieve their goals.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.