Why Shares in Chemours Soared More Than 10% Today

Shares in chemicals company Chemours (NYSE: CC) were up almost 10% as of 3 p.m. EDT today. The move marks a sectorwide shift in sentiment on chemicals companies, particularly titanium dioxide suppliers like Chemours and its peers Kronos Worldwide, Tronox, and Venator Materials. Titanium dioxide is a critical ingredient in paint, coatings, and packaging, among other industries.

In a nutshell, the sector has been beaten up over the past few months as it's become clear that supply chain difficulties are hitting the industrial sector and impacting sales volumes. For example, in early September, a major paint and coatings company, PPG Industries, warned, "The coatings commodity supply disruptions have further deteriorated since the company's earnings announcement on July 19." Management also said that "sales volumes in the third quarter 2021 will be lower by $225 million to $275 million, compared to what the company anticipated at the start of the third quarter. "

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Source Fool.com