LyondellBasell Industries NV's stock fell sharply by 5.86% during pre-market trading on Wednesday.
The decline was driven by a combination of factors including soft near-term demand in automotive and durable goods markets, and operational disruptions. The company disclosed that approximately 20% of global ethylene, polyethylene, and polypropylene capacity has been affected by geopolitical conflicts. Additionally, an unplanned shutdown at the Bayport PO/TBA facility is expected to reduce output volumes.
While management noted that higher oxygenates margins would partially offset the impact and expects sequential improvement across most businesses in the second quarter, the immediate concerns over demand and supply issues, coupled with broader weakness in the commodity chemicals sector, led to significant selling pressure.
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