Materials Sector Weekly Round-up: Hudson, Livent top list after strong Q1; Iamgold drops on capex pressure

May 07, 2022 9:07 AM ETXLB, LMAHDS03:COM, XAUUSD:CUR, HDSN, LTHM, ALB, HUDI, GPRE, IAG, GLT, CMP, PRM, EQX, WOOD, VAW, MXI, XME, GDX, RING, COPXBy: Preeti Singh, SA News Editor

aluminum ingots stacked on a pallet, raw material, aluminum alloy ready to be processed

Javier Ruiz/iStock via Getty Images

The S&P Materials sector closed this trading week with a slight dip of 0.68%. The Materials Select Sector SPDR (NYSEARCA:XLB) was also down 0.66%.

Aluminum prices hit a four-month low on Friday as demand concerns created by slowdowns in manufacturing activity in China and elsewhere were reinforced by the strong dollar, Reuters reports. LME benchmark aluminum (LMAHDS03:COM) traded -0.7% at $2,895/metric ton after earlier touching $2,888/ton, a 30% decline since early March and the lowest price since Jan. 6.

Copper prices, meanwhile, was down 0.2% at $9,467/ton, zinc fell 2.1% at $3,824/ton, lead dropped 1.4% to $2,246, tin lost 1.5% to $39,900 and nickel ceded 0.3% to $30,025.

Base metals also tumbled at the start of the week in light of slowing manufacturing activities in China and the U.S., along with a stronger dollar, expected interest rate hikes in the U.S., and the war in Ukraine, which is pushing up energy prices and hurting industry.

Gold prices dipped more than 2% to nearly a three-month low on Monday as the benchmark 10-year U.S. Treasury yield hit 3% for the first time since Dec. 2018 ahead of this week's meeting of Federal Reserve policy makers. After sinking to $1,863.60/oz earlier in the week, gold spot price (XAUUSD:CUR) settled at $1,882.08/oz by the end of the week, down -0.63%.

Take a look at this week's top gainers and losers among basic material stocks ($300M market cap or more):

Hudson Technologies (HDSN) +39.91%; The stock rallied after Q1 results, with revenue up 149% Y/Y to $84.3M.

Livent (LTHM) +31.98%; Shares gained after better-than-expected Q1 results and a massive revenue guidance boost.

Albemarle (ALB) +26.30%; Shares spiked on better-than-expected Q1 results and a strong guidance raise.

Huadi International Group (HUDI) +23.53%; The stock has gained 467.57% over the past year.

Green Plains (GPRE) +19.96%; The company posted lower-than-expected Q1 margins but expects normalized production moving forward.

Take a look at this week's top losers among basic material stocks ($300M market cap or more):

Iamgold (IAG) -23.83%; Shares plunged following a Q1 earnings report that sparked at least three analyst downgrades.

Glatfelter (GLT) -18.94%; The firm missed Q1 earnings estimates as higher working capital usage weighed on margins.

Compass Minerals International (CMP) -18.49%; The stock was among the top energy/material losers as FQ2 earnings fell below estimates.

Perimeter Solutions (PRM) -18.20%; Prices have plunged -40.29% YTD.

Equinox Gold (EQX) -17.14%; Shares were pressured as Q1 revenues fell short of the consensus.

Other materials ETFs to watch: iShares Global Timber & Forestry ETF (WOOD), Materials Select Sector SPDR ETF, Vanguard Materials ETF (VAW), iShares Global Materials ETF (MXI), SPDR S&P Metals and Mining ETF (XME), VanEck Vectors Gold Miners ETF (GDX), iShares MSCI Global Gold Miners ETF (RING), Global X Copper Miners ETF (COPX).

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.