Mat-Chem Notes
Index changes. Starting this week, we have removed Koppers Holdings, Inc. (KOP), a provider of treated wood products, wood treatment chemicals, and carbon compounds, and added Rayonier Advanced Materials, Inc. (RYAM), a global leader in production of specialty cellulosics, such as acetates and esters, using wood pulp and cotton linter as a raw material, both supplying to and/or competing with (not an unusual situation in specialty chemicals industry) ASH and NGVT. WTR-CMI last week. The third quarter ended on a down note, with the S&P 500 losing 3.7% and the Russell 2000 dropping 2.7%. Our WTR-CMI index slightly underperformed the Russell 2000, declining 3.0% for the week. Coincidently, RYAM led the performance of stocks in our index, appreciating 18% last week, as news spread of one of its main competitors in commodity markets announcing the intention to shut down a major wood pulp production plant in the US. Lithium (LAC and PLL) and ag-chem stocks (FMC and AVD) were the worst performers in our index last week on lower lithium prices and signs of slowing EV demand, and a weaker farmer outlook for 2024/25 season. Expanding beyond EVs. ALB and CAT announced a new collaboration agreement for the deployment of CAT’s battery-electric trucks and site energy transfer solutions, a lithium offtake framework agreement, and an agreement to explore potential opportunities to collaborate on research into battery technology. Putting IRA money to work. Despite the ire of environmentalists and tribal groups opposed to developing the Thacker Pass lithium reserves in Nevada, the DoE is considering LAC’s $1 billion loan application to develop its resource in the region. Seabed mining in Europe? Norway, long dependent on oil & gas exports to power its economy and social programs, is looking to seabed mining of battery metals to help fill the GDP gap as fossil fuel exports are expected to wane. In fact, one of its largest oil companies appears ready to accept the challenge of developing the unusual resource, provided parliament can approve an exploration and exploitation regulatory framework, which would affect deep-sea resource exploration companies like TMC and OMEX. Looking for an uptick. The worst may be over for the plastics industry in the US, according to the Plastics Industry Association’s recent report. This would be good news for AVNT and HXL, as well as resin producers like DOW and LYB, among others.
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.