Summary

• Shin-Etsu Chemical remains a buy, following my evaluation of the new rare earth facility proposal and the outlook for PVC pricing.
• SHECY's new refinery enhances chain resilience, targeting critical materials for semiconductors and EVs, with 50% of the capex subsidized by the government.
• Downside risk from PVC price volatility is mitigated by recent price hikes and improving supply-demand dynamics.
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I've kept Shin-Etsu Chemical Co., Ltd. (SHECY) (SHECF) as a 'Buy-rated' name.

SHECY's decision to construct a rare earths refinery should be value-accretive, taking into account state subsidies and the exposure to fast-growing markets

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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