Materials
XLB · Companies mining metals, making chemicals, and producing raw materials
In a Recession environment, Materials typically struggles because Lower growth can weaken volumes and margins.
Price Performance
Sector ETF vs S&P 500 benchmark
Materials price performance
Sector (solid) vs S&P 500 (gray dashed)
Key Drivers
What makes Materials go up or down in the current environment.
Commodity prices
↑ HELPSRising commodity prices increase revenues for producers and processors.
Industrial demand
↑ HELPSConstruction and manufacturing activity lifts need for raw materials.
Dollar strength
↓ HURTSA stronger USD can reduce global commodity purchasing power and prices.
Energy costs
↓ HELPSLower energy costs can reduce input expenses for chemicals and production.
Supply discipline
↑ HELPSConstrained supply can stabilize prices and improve realized margins.
Regulatory & capex
↓ HURTSMore restrictions can raise costs and delay production expansion.
Notable Companies
Major companies operating in the materials space.
Emerging Trends
Secular shifts worth watching in materials.
Industrial input re-stocking
When inventory cycles shift, materials often see demand and pricing accelerate quickly.
Clean-tech materials demand
Electrification and grid buildouts require more metals and chemicals for components.
Capacity optimization
Producers that optimize capacity can capture better margins during pricing upswings.