- Share price growth at Synthomer and Elementis
- Some groups prefer to watch and wait
It has been a largely bruising earnings season for the chemical companies of the London Stock Exchange. But with its shares up by 50 per cent since its 12 March results announcement, small cap Synthomer (SYNT) is the clear outlier. Larger rivals Croda (CRDA) and Victrex (VCT) are both down more than 5 per cent over the past month as fears around industry-wide destocking reasserted themselves.
The trend largely emerged as a legacy of the pandemic, with chemical buyers feeding in to consumer products and industrial manufacturing eager to rebuild their supplies as restrictions eased. These stockpiles were in place well into 2023, by which time economic pressures meant customers had also become cautious about overprocurement. Sector investors will now be looking towards a macroeconomic recovery to revive demand and send shares up again.