Wacker Chemie: CitiGroup sees rebalancing of risks, cuts to "neutral"



** CitiGroup downgrades specialty chemicals maker Wacker Chemie WCHG.DE to "neutral" from "buy" saying sees a rebalancing of the risks as 2020 approaches

** The brokerage says that it sees 8.6% global supply growth in siloxane (silicones building block) driven by a wave of Chinese supply growth from established producers

** It says also sees risks to Polysilicon earnings rising as the pace of the initial price recovery remains lackluster

** CitiGroup says expects siloxane utilization rates to fall in 2020 and given the size of the company's Silicones business -- which accounts for 65% of EBITDA -- any slowdown could easily outweigh the improved Polysilicon economics

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