Our Reports on Stocks in the Chemicals – Mid/Small Industry
Image Source: Rusty Clark Structure of the Chemicals Industry The chemicals (mid/small) industry includes firms that make thousands of different chemical substances, ranging from basic raw materials to advanced specialty chemicals. Making chemicals is a cyclical and energy-intensive business, with volatile oil/gas prices influencing feedstock, operation, and transportation costs. Specialty providers can carve out niches, but commodity chemicals producers are largely undifferentiated, making it impossible to gain a sustainable competitive edge. The industry is very capital intensive, and large swings in prices and volume should be expected. We don’t like the industry structure. We’ve dropped coverage of stocks in this industry. We cover the Chemicals – Broad industry. Click here.