Shares of chemical companies Chemours and Tronox experienced sudden drops in November

Shares of chemical companies Chemours (New york stock exchange: CC) and Tronox (New york stock exchange: TROX) experienced sudden drops in November, with Chemours ending the month lower 9.2% and Tronox lower 13.5%.

Tronox and Chemours are generally major purveyors of pigment and food additive titanium dioxide (TiO2). Other TiO2 the likes of Kronos Worldwide (New york stock exchange: KRO) and Huntsman (New york stock exchange: HUN) were unaffected, with Kronos getting an especially good month, up 6.1%.

Each company's stock cost was hit for any different reason.

Chemours' shares dropped after the organization reported third-quarter earnings that really beat analysts' expectations. Revenue was up 13% within the prior-year quarter and adjusted EBITDA was up a remarkable 42%. Investors might have been worried about the business's lengthy-term debt load, that has surpassed $4 billion, up about $500 million since this past year.

Tronox's shares, however, delivered to the finish from the month. In March, caffeine companie announced its intention to get the TiO2 business of Saudi competitor Cristal, however the merger was placed on hold waiting for a ruling in the Ftc. Based on Tronox, the waiting period was set to run out on 12 ,. 1, however with no go-ahead in the Federal trade commission, nervous investors started to market Tronox stock. Affirmed, at the begining of December, the Federal trade commission announced it had been challenging the merger on antitrust grounds.

Although Chemours and Tronox dropped for various reasons in November, stocks over the entire TiO2 industry -- including Kronos and Huntsman -- happen to be shedding in December, likely because of the FTC's comments the market is an "oligopoly" rich in barriers to entry.

Consolidation was viewed as one likely method for TiO2 companies, particularly Fortune 500 member Chemours, to keep growing. Using the Federal trade commission trying to place the kibosh on Tronox's purchase of Cristal's TiO2 business, it appears as though that avenue for growth will probably be a great deal tougher. And because of the already huge cost appreciation and iffy balance sheets of the majority of the chemical companies in the market, it is simply one more reason for investors to influence obvious of TiO2.

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