Chemours, chemical maker peers jump after EPA withdraws new use rules

Shares of several chemical names, including Chemours (CC), Albermarle (ALB) and Dow Inc. (DOW), jumped on Tuesday after the U.S. Environmental Protection Agency withdrew new use rules for 18 chemicals.

NEW USE RULES: The EPA explained that it had previously in 2023 proposed significant new use rules under the Toxic Substances Control Act for 18 chemical substances that were the subject of premanufacture notices and a subsequent TSCA Order. The agency is now withdrawing the proposed rules because it withdrew the TSCA Order that was the basis of the rules on December 18, 2024.

“In the Federal Register of June 20, 2023, EPA proposed SNURs pursuant to TSCA section 5(a)(2) (15 U.S.C. 2604(a)(2)) that would require persons who intend to manufacture or process any of 18 specific chemical substances derived from plastic waste for an activity that is proposed as a significant new use by this rule to notify EPA at least 90 days before commencing that activity. These chemical substances were subject to an August 25, 2022 TSCA section 5(e) Order imposed by EPA after review of PMNs for these substances. The proposed SNURs identified significant new uses to include any manufacturing, processing, use, distribution in commerce, or disposal that does not conform to the restrictions imposed by the underlying TSCA section 5(e) Order.

“An additional proposed significant new use was manufacturing or processing of the chemical substances using feedstocks that contain any amount of heavy metals (arsenic, cadmium, chromium VI, lead, mercury), dioxins, phthalates, per- and polyfluoroalkyl substances (PFAS), polybrominated diphenyl ethers (PBDEs), alkylphenols, perchlorates, benzophenone, bisphenol A (BPA), organochlorine pesticides (OCPs), ethyl glycol, methyl glycol, or N-methyl-2- pyrrolidone (NMP). On April 7, 2023, petitioners filed a Petition for Review of the TSCA section 5(e) Order… Given certain potential infirmities with the Order, EPA sought voluntary remand of the TSCA section 5(e) Order to reconsider it. On December 4, 2024, the court issued an order granting EPA’s motion for voluntary remand. EPA withdrew the TSCA section 5(e) Order (and associated determinations regarding the PMNs) on December 18, 2024. At the time that the TSCA section 5(e) Order was withdrawn, manufacture of the chemical substances had not yet commenced. In addition, since the proposed rule’s publication, EPA has received 30 comments, including adverse ones, which encouraged the Agency to remand or modify the TSCA section 5(e) Order and SNURs. Consistent with the withdrawal of the TSCA 5(e) Order, and for the reasons above, EPA is withdrawing the proposed rules. Copies of the comments are available in the docket,” the agency said.

PRICE ACTION: In Tuesday morning trading, shares of Chemours are up almost 11%, Albemarle is up about 10%, LyondellBasell (LYB) is up almost 6%, Dow Inc is up about 7.5%, and Tronox Holdings (TROX) is up 12%.