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European Chemicals 1H Outlook ‘Cautious’ on FX, EMs, Nomura Says 2014-03-31 06:52:19.231 GMT
By Chiara Remondini March 31 (Bloomberg) -- European chemicals cos. seeing similar trends in 1Q vs 4Q incl. improving volumes, worsening FX, Nomura says in note after its March 27-28 chemicals conference. * Nomura says cos. generally “cautious” on start of yr; key issues: FX, weather, stabilizing EU, EMs slowdown * Europe at low but steady level, China slowing but strong, U.S. “well oriented” * Akzo Nobel confirmed European deco has improved vs easy comparables, mild winter helping deco business * Arkema sees better automotive demand, no improvement in construction, still weak demand in coatings * Animal nutrition demand in EU better vs last yr on lower grain prices * FX headwinds “clearly” worsened in 1Q, Russia crisis not seen as risk yet * Most cos. under coverage have small rev. exposure (1%-2% of sales) to Russia; BASF has higher risk as 25% of its oil production, 62% of gas production was in Russia last yr * Cos. noted impact of cold weather in North America, mild winter in Europe * North America delays offset by strong start in EU * K+S “clearly positive” on potash after early start to season in Europe, price increases for MOP; Yara sees similar pickup in prices for nitrates * Syngenta: 1Q weather impact will probably be minimal, early Europe planting season offsetting cold weather in North America
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To contact the reporter on this story: Chiara Remondini in Milan at +39-02-8064-4241 or cremondini@bloomberg.net To contact the editors responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net Jurjen van de Pol