Arkema's Stock Plunges 6.46% at Midday, Weighed Down by Energy Price Surge
Arkema's stock experiences a sharp decline this Tuesday, March 3, amid a surge in energy prices triggered by military tensions in Iran. The specialty chemicals company's shares fell 6.46% to 54.30 euros at midday. This underperformance follows an already challenging week, marked by a nearly 10% decline over seven days.
Direct Impact of Rising Energy Costs
Arkema's stock is severely affected by the sudden increase in energy costs following military operations in Iran. Brent crude jumped to $80 per barrel while European natural gas (TTF) soared by nearly 25%, a situation that directly burdens the bills of European chemical groups, which are major energy consumers in their production processes. Additionally, the diversion of shipping routes around the Strait of Hormuz by major global shippers increases logistic costs, adding extra pressure on the entire raw material supply chain.
For Arkema, whose operations rely on the transformation of oil and gas derivatives, this energy shock revives concerns about operational margins. The group, which will publish its first-quarter results on May 6, will then need to detail the potential impact of this cost surge on its profitability. The general assembly is also scheduled for May 21.
Technical Analysis of the Day's Trading
From a technical standpoint, today's session marks a drop below the 50-day moving average, located at 55.21 euros, a level that had acted as an intermediate floor in recent weeks. This downward breach occurs as the price has significantly distanced itself from the 200-day moving average (57.04 euros), indicating a pronounced short-term bearish dynamic.
The RSI, an indicator measuring the speed and magnitude of price variations, has fallen to 28, a level indicating an oversold zone. This reading means that selling pressure has intensified rapidly, without guaranteeing a technical rebound. The next identifiable support threshold is at 48.46 euros, while the most relevant resistance is seen at 65.45 euros, a considerable gap from the current price. Over one year, the stock now shows a decline of 31.61%, signaling a sustained erosion in the group's valuation.
