Increased Demand in Steel and Steel Fluids Businesses in China Benefit These Specialty Chemicals Companies: Daniel Rizzo, Analyst, Shares His Picks Best Exposed to the Asian Markets

Wall Street Transcript

67 WALL STREET, New York - July 19, 2013 - The Wall Street Transcript has just published its Agricultural & Specialty Chemicals Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Crop Yield Management - U.S. Corn Crop - Chemicals Companies Pricing Power - Fertilizers, Paints and Coatings, and Petrochemicals - Emerging Market Demand - Specialty Chemicals and Fertilizer Pricing Power

Companies include: American Vanguard Corp. (AVD), Quaker Chemical Corporation (KWR), Minerals Technologies Inc. (MTX), OMNOVA Solutions Inc. (OMN) and many more.

In the following excerpt from the Agricultural & Specialty Chemicals Report, an expert analyst discusses the outlook for the sector for investors:

TWST: Which international markets represent the best opportunities for chemical companies, and which companies from your group have the best presence in those markets?

Mr. Rizzo: Well, if you talk industries in the international - because I do think domestically is probably better positioned than most - but if you're talking strict international, obviously, Asia is much stronger than Europe, although Europe I think is seeing some signs of stabilization.

In terms of companies that have the most exposure to Asia, Quaker Chemical (KWR) has a very strong footprint in China within the steel industry, are probably the largest player there in steel and the steel fluids business, and they should benefit from increased demand from that region.

Other companies that might do well there too would be, let's see, Minerals Technologies (MTX). S&P has an exposure there. They should also benefit - I think MTX has a new plant opening up next year in China that's going to help - the new distillation plant - that's going to help fuel growth. So I think they should do fairly well, but more so in 2014 versus 2013.

TWST: What's the level of investor interest in the sector at the moment, and do you think that the investment community has a good grasp of the opportunities in the sector?

Mr. Rizzo: I think people are starting to warm up the chemical sector because of the benefits from low raw material costs and realizing that the high cyclicality is not really as present anymore. Do we have a grasp? I mean, basic material guys do focus on chemicals, but I would say that investors as a whole tend to, and in the past have, shied away from the chemical sector because there are a lot of moving parts...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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