SBUX - Korea Refining/Chemical: On The Front Line In The Pandemic Fight
Industry and stock outlook
We maintain Neutral on the refining sector and overweight on the chemical sector. We expect to see improvements in the earnings and share price performance of chemical companies as expectations for economic recovery grow. We recommend LG Chem (LGCLF), Hanwha Solutions (009830.KS, BUY), Lotte Chemical (011170.KS, BUY), and Kumho Petrochemical (011780.KS, BUY).
US natural gas output to decline further as LNG price competitiveness weakens
US LNG supply remains tight due to a reduction in natural gas production in the US. The US Energy Information Administration, in its short-term energy outlook published