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LyondellBasell Takes a Leadership Role to End Plastic Waste

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LyondellBasell’s leadership role

On January 16, LyondellBasell (LYB) announced that its CEO Bob Patel, Proctor & Gamble’s (PG) CEO David Taylor, and Veolia’s CEO Antoine Frérot will lead the newly announced global AEPW (Alliance to End Plastic Waste). LyondellBasell is a founding member of AEPW.

AEPW is the first international coalition of chemical and plastic manufacturers along with converters, consumer goods companies, retailers, and others to partner with the financing community, government, and environmental development NGO to end plastic waste in the environment. Patel said, “From helping to reduce food waste and improving healthcare products to cutting fuel consumption and emissions from lightweight vehicles, there is no doubt that plastics have played a positive role in improving quality of life for billions of people around the world. But like so many other products, responsibly managing their disposal or reuse has become a concern – not just for governments or NGOs, but for all of us.”

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LyondellBasell’s stock performance

LyondellBasell stock remained positive. The stock gained ~2.2% last week and closed at $87.86. Despite the gains, LyondellBasell traded 7.2% below its 100-day moving average price of $94.64, which indicates prevailing weakness in the stock.

On a year-to-date basis, the stock has gained 6.7%%. In comparison, Celanese (CE), Westlake Chemical (WLK), and Eastman Chemical (EMN) have fallen 9.3%, 20.5%, and 12.3%, respectively. LyondellBasell’s 14-day relative strength index of 56 indicates that the stock isn’t overbought or oversold.

Investors could hold LyondellBasell indirectly by investing in the Invesco S&P 500 Equal Weight Materials ETF (RTM), which gained 1.4% last week. RTM invested 4.10% of its portfolio in LyondellBasell as of January 18.

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