Chemical stocks fall in 2025 as sector struggles with demand, input costs

Shares of U.S. Chemical companies are set to end 2025 on a negative note as the sector continues to struggle with weak demand, higher input costs and tightening European regulations

Chemicals firms serve an array of end markets such as automobiles, building and construction, medical, and electronics

As of last close, LyondellBasell LYB.N has fallen 41.2%, Eastman Chemical EMN.N has lost ~30%, Dow DOW.N has declined 41.4% and Chemours Co CC.N has lost 30%

DOW and LYB are among the worst performers on the S&P 500 Materials index .SPLRCM

"We see risk of degradation in integrated polyethylene margins with more risk of oil-to-gas spread compression and pressure on export markets," Citi analyst Patrick Cunningham said in a note

Compressed margins and higher ethane costs could weigh on free cash flow and dividend sustainability for DOW and LYB - Cunningham

Agri-chemical companies: FMC Corp FMC.N and Mosaic MOS.N have fallen 71.4% and 1.8% respectively in 2025