Here's Why Albemarle Stock Fell 31.1% in March
Shares of Albemarle (NYSE: ALB) plunged 31% last month, according to data provided by S&P Global Market Intelligence. Global lithium markets were already suffering from a mismatch in supply and demand, which forced them into the first major downturn since lithium became an essential global commodity a few years ago. The coronavirus pandemic will surely exacerbate the imbalance by curtailing short-term demand for electric vehicles (EVs), which are by far the largest source of demand.
That's not the only point of exposure for Albemarle. The business owns dominant market positions in both refining catalysts (for petrochemicals and fuels) and bromine chemicals (for various industrial applications). With demand for transportation fuels down by at least half -- and as much as 80% in some parts of the globe -- investors should expect a rough year ahead for the company. That likely explains why the dividend stock hasn't seen much relief despite the stock market's broader recovery in recent weeks.
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Source Fool.com
