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4 Top Specialty Chemical Stocks to Buy on Demand Strength

4 14 19
14.09.2021

The specialty chemical industry has rebounded from the crisis wrought by coronavirus, taking succour from an uptick in demand in key markets including automotive and construction. The upturn in global industrial and manufacturing activities bodes well for the industry. With the reopening of the major economies around the world, demand for specialty chemicals has started to pick up on a rebound in global economic activities. Business activities have picked up pace in the United States with the gradual reopening of the economy as the vaccination drive is in full swing. Despite the ongoing supply-chain problems and the spread of the highly contagious Delta variant, the U.S. manufacturing sector remains in the expansion territory, aided by strong demand for goods and an upturn in the overall economy. The sector has staged a strong rebound from the coronavirus blues with activities showing a V-shaped recovery. U.S. manufacturing activities picked up in August on a surge in demand notwithstanding continued supply-chain disruptions and labor shortages. The U.S. Manufacturing Purchasing Managers’ Index clocked 59.9% in August, rising from 59.5% in July on a surge in new orders, per the Institute for Supply Management. A reading above 50 indicates expansion in activity. New orders rose for the 15th straight month in August indicating solid demand for manufacturing products. The accelerated deployment of vaccines coupled with the sizable coronavirus stimulus have led to a surge in consumer spending. Businesses are struggling to keep up with strong demand amid labor and raw material shortages. Three-quarters of U.S. adults have already received at least one vaccine shot. Inoculation of a sufficient number of people will allow the U.S. economy to fully open up, which would provide further boost for the manufacturing sector. The sector is a major driver for the chemical industry which touches around 96% of manufactured goods. An upswing in demand in key end-use markets also bode well for the specialty chemical........

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