Materials sector posts lowest performance in S&P for September
Performance Overview: The Materials Select Sector SPDR Fund ETF (XLB) was the worst-performing sector in September, declining 2.3%, with 19 out of 26 stocks in the sector experiencing losses, notably LyondellBasell Industries and Freeport-McMoRan.
Quarterly and Year-to-Date Gains: Despite a modest 2% gain in Q3 2025, the ETF lags behind the S&P 500's nearly 8% rally, with a year-to-date increase of 5.4%, trailing behind other sectors like technology, communications, and industrials.
Top and Bottom Performers: In Q3, Newmont and Albemarle were the top performers with gains of 43.3% and 28.9%, respectively, while LyondellBasell and Eastman Chemical were the bottom performers, losing 19.8% and 19.4%.
Quantitative Ratings: The ETF received a "Strong Sell" rating from Seeking Alpha with a score of 1.38 out of 5, primarily due to risks and momentum, although it scored well in expense and liquidity categories.
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U.S. Advances Toward Approval of Deep-Sea Mining in International Waters
U.S. Government's Move on Deep-Sea Mining: The U.S. is nearing approval for deep-sea mining in international waters, with public hearings scheduled for applications from The Metals Company, marking a significant step in securing critical minerals like nickel and cobalt.
Environmental and Legal Concerns: The initiative faces strong environmental opposition and legal uncertainties, as it may bypass the International Seabed Authority and could lead to court challenges, while the long-term ecological impacts remain largely unknown.
ArcelorMittal Leads Steel Stocks in Year-to-Date Performance
Market Performance: As 2025 nears its end, Wall Street has seen strong gains across most sectors, with the materials sector up by 7.37% year-to-date (YTD), matching the performance of the State Street Materials Select Sector SPDR ETF (XLB).
Top Performers in Steel: ArcelorMittal leads the materials subsector with a remarkable YTD performance of nearly 96%, followed by other notable companies such as Warrior Met Coal and Steel Dynamics, which have also shown significant gains.
Quant Ratings: The article highlights the Quant Ratings of various steel companies, with ArcelorMittal receiving a rating of 4.28, indicating strong performance, while others like Alpha Metallurgical Resources have underperformed with a rating of 2.92.
ETFs and Future Outlook: Several materials-focused exchange-traded funds (ETFs) are mentioned, and there is an expectation that the basic materials sector will outperform in 2026, while the energy sector may lag behind.
Leading Silver and Paper Product Companies of the Year So Far
Market Performance: As 2025 nears its end, Wall Street has seen strong gains across most sectors, with the materials sector up by 7.37% year-to-date (YTD), matching the performance of the State Street Materials Select Sector SPDR ETF (XLB).
Top Performers in Silver: Hecla Mining (HL) has emerged as the top performer in the silver subsector, boasting an impressive YTD increase of 295.3%.
Struggles in Paper Products: In contrast, the paper products sector has faced challenges, with Suzano (SUZ) down 11.2% and Sylvamo (SLVM) down 34.9% YTD.
ETFs and Future Outlook: Various materials-focused exchange-traded funds (ETFs) are available, and there are expectations for the basic materials sector to outperform in 2026, while energy is predicted to lag.
Hawkins Leads the Challenged Commodity Chemical Sector in 2025
Commodity Chemical Companies Performance: The top 10 commodity chemical companies have shown mostly negative year-to-date performance as 2025 nears its end, with Hawkins, Inc. being the only exception, up 16.2%.
Worst Performer: Dow Inc. has recorded the worst performance among the listed companies, with a significant decline of 42.5% year-to-date.
Market Capitalization Criteria: The list includes only commodity chemical stocks with market capitalizations of at least $1 billion.
Overall Sector Trends: The materials sector has been sluggish in 2025, with other sectors like energy also underperforming, while the tech sector has seen a notable increase.
Specialty Chemicals Underperform in 2025, Yet These 10 Companies Have Achieved Notable Gains
Specialty Chemicals Performance: The specialty chemicals industry has underperformed in 2025, with a year-to-date gain of only 2.9%, lagging behind the broader Materials sector's nearly 7% increase.
Top Performing Stocks: Despite the overall industry struggles, certain specialty chemical companies have excelled, with Perimeter Solutions leading at +116.1% YTD, followed by Sociedad Química y Minera de Chile at +81.3% YTD.
Market Capitalization Focus: The highlighted top-performing stocks are all companies with market capitalizations of at least $1 billion, showcasing significant gains amidst a generally sluggish sector.
Broader Market Context: The article also notes that while the specialty chemicals sector is lagging, other sectors like technology have seen substantial gains, with the S&P 500 tech sector up 21% YTD.
Short Sellers Increase Positions Against Material Stocks in November
Short Interest Trends: Short interest in materials stocks within the S&P 500 increased to 3.71% at the end of November, up from 3.13% in October, with International Paper being the most shorted stock at 10.24% of its float.
Sector Performance: The S&P 500 Materials sector has risen 7.25% year-to-date, lagging behind the overall S&P 500 index, which has gained 17.33% during the same period.
Company-Specific Challenges: International Paper faces challenges in its European business integration and weaker-than-expected box shipment volumes in the U.S., impacting its cash flows.
Industry Insights: Containers & packaging is the most shorted industry at 5.29%, while construction materials have the least short interest at 3.31%, indicating varying investor sentiment across sub-sectors.
U.S. Advances Toward Approval of Deep-Sea Mining in International Waters
U.S. Government's Move on Deep-Sea Mining: The U.S. is nearing approval for deep-sea mining in international waters, with public hearings scheduled for applications from The Metals Company, marking a significant step in securing critical minerals like nickel and cobalt.
Environmental and Legal Concerns: The initiative faces strong environmental opposition and legal uncertainties, as it may bypass the International Seabed Authority and could lead to court challenges, while the long-term ecological impacts remain largely unknown.
ArcelorMittal Leads Steel Stocks in Year-to-Date Performance
Market Performance: As 2025 nears its end, Wall Street has seen strong gains across most sectors, with the materials sector up by 7.37% year-to-date (YTD), matching the performance of the State Street Materials Select Sector SPDR ETF (XLB).
Top Performers in Steel: ArcelorMittal leads the materials subsector with a remarkable YTD performance of nearly 96%, followed by other notable companies such as Warrior Met Coal and Steel Dynamics, which have also shown significant gains.
Quant Ratings: The article highlights the Quant Ratings of various steel companies, with ArcelorMittal receiving a rating of 4.28, indicating strong performance, while others like Alpha Metallurgical Resources have underperformed with a rating of 2.92.
ETFs and Future Outlook: Several materials-focused exchange-traded funds (ETFs) are mentioned, and there is an expectation that the basic materials sector will outperform in 2026, while the energy sector may lag behind.
Leading Silver and Paper Product Companies of the Year So Far
Market Performance: As 2025 nears its end, Wall Street has seen strong gains across most sectors, with the materials sector up by 7.37% year-to-date (YTD), matching the performance of the State Street Materials Select Sector SPDR ETF (XLB).
Top Performers in Silver: Hecla Mining (HL) has emerged as the top performer in the silver subsector, boasting an impressive YTD increase of 295.3%.
Struggles in Paper Products: In contrast, the paper products sector has faced challenges, with Suzano (SUZ) down 11.2% and Sylvamo (SLVM) down 34.9% YTD.
ETFs and Future Outlook: Various materials-focused exchange-traded funds (ETFs) are available, and there are expectations for the basic materials sector to outperform in 2026, while energy is predicted to lag.
Hawkins Leads the Challenged Commodity Chemical Sector in 2025
Commodity Chemical Companies Performance: The top 10 commodity chemical companies have shown mostly negative year-to-date performance as 2025 nears its end, with Hawkins, Inc. being the only exception, up 16.2%.
Worst Performer: Dow Inc. has recorded the worst performance among the listed companies, with a significant decline of 42.5% year-to-date.
Market Capitalization Criteria: The list includes only commodity chemical stocks with market capitalizations of at least $1 billion.
Overall Sector Trends: The materials sector has been sluggish in 2025, with other sectors like energy also underperforming, while the tech sector has seen a notable increase.
Specialty Chemicals Underperform in 2025, Yet These 10 Companies Have Achieved Notable Gains
Specialty Chemicals Performance: The specialty chemicals industry has underperformed in 2025, with a year-to-date gain of only 2.9%, lagging behind the broader Materials sector's nearly 7% increase.
Top Performing Stocks: Despite the overall industry struggles, certain specialty chemical companies have excelled, with Perimeter Solutions leading at +116.1% YTD, followed by Sociedad Química y Minera de Chile at +81.3% YTD.
Market Capitalization Focus: The highlighted top-performing stocks are all companies with market capitalizations of at least $1 billion, showcasing significant gains amidst a generally sluggish sector.
Broader Market Context: The article also notes that while the specialty chemicals sector is lagging, other sectors like technology have seen substantial gains, with the S&P 500 tech sector up 21% YTD.
Short Sellers Increase Positions Against Material Stocks in November
Short Interest Trends: Short interest in materials stocks within the S&P 500 increased to 3.71% at the end of November, up from 3.13% in October, with International Paper being the most shorted stock at 10.24% of its float.
Sector Performance: The S&P 500 Materials sector has risen 7.25% year-to-date, lagging behind the overall S&P 500 index, which has gained 17.33% during the same period.
Company-Specific Challenges: International Paper faces challenges in its European business integration and weaker-than-expected box shipment volumes in the U.S., impacting its cash flows.
Industry Insights: Containers & packaging is the most shorted industry at 5.29%, while construction materials have the least short interest at 3.31%, indicating varying investor sentiment across sub-sectors.
