Basic Materials Roundup: Market Talk

The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0412 ET – Recent renewed optimism on Germany’s chemical manufacturer BASF is premature, since much remains uncertain around the continued conflict in the Middle East, J.P Morgan analysts say in a research note. Chemical producers in Asia, who were typically more exposed to the Strait of Hormuz for the sourcing of oil and naphtha—the key oil-based feedstock for petrochemicals—prior to the conflict, have shown greater flexibility in sourcing from alternative regions than was originally expected, the analysts say. This means that oversupply in the chemical industry might persist even in a tighter feedstock market, with potential for an even greater margin pressure, they add. Shares trade 0.2% higher at 48.49 euros. (nina.kienle@wsj.com)