In this edition of European Chemicals Update from Kroll, we evaluate current trends for key raw materials, prevailing investor sentiment and valuation developments in the featured consumer specialty chemicals sub-sector.
- Key raw materials prices in the chemicals sector witnessed an uptick in Q1 2022, driven mainly by the Russia-Ukraine conflict and concerns around supply shortages.
- Next, the ifo Business Climate Index for the German chemical industry changed to negative in Q1 2022, with current conditions having a steep fall and expectations moving into the negative territory, mainly as a consequence of the ongoing conflict in Ukraine and supply chains disruption. This indicates the German companies’ concern regarding current business activities and tough conditions in the near future.
- Finally, in the consumer specialty sub-sector, featured companies showed an increase in market capitalization. Top performers include Croda International and Givaudan SA, which generated approximately 25% and 14% share price gain in the last 12 months, respectively, while the share price of Koninklijke DSM N.V. also had a double-digit growth rate.