The chemical industry came to a grinding halt last year with the onset of the COVID-19 pandemic. However, an increase in manufacturing activity and increased export demand are flashing, positive indicators of the chemical industry’s revival. Therefore, we think one could now consider adding top chemical stocks LyondellBasell (LYB), Westlake Chemical (NYSE:WLK), Huntsman (NYSE:HUN), and The Chemours (CC) to one’s portfolio. So, let’s examine these names.The chemical industry was hard hit by last year’s COVID-19 pandemic-fueled disruptions. However, the American Chemistry Council (ACC) reported that U.S. chemical production expanded in 2021, thanks to a post-lockdown spending surge that boosted demand for chemicals and other goods and materials.
With diverse uses for chemicals—ranging from assisting in the preservation and flavoring of foods to the production of soaps and increasing chemical usage in the automotive and construction industries—the industry is expected to grow substantially in the coming months. U.S. chemical volumes are expected to grow 3.2%. And capital spending in the chemistry industry is expected to rise by 3.1% in 2022.
Given this backdrop, we think it could be wise to bet on fundamentally strong chemical stocks LyondellBasell Industries N.V. (NYSE:LYB), Westlake Chemical Corporation (WLK), Huntsman Corporation (HUN), and The Chemours Company (NYSE:CC).