Basic Materials Sector

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DEFINITION of 'Basic Materials Sector'

A category of stocks that accounts for companies involved with the discovery, development and processing of raw materials. The basic materials sector includes the mining and refining of metals, chemical producers and forestry products.

INVESTOPEDIA EXPLAINS 'Basic Materials Sector'

The basic materials sector is sensitive to changes in the business cycle. Because the sector supplies materials for construction, it depends on a strong economy. This sector is also sensitive to supply and demand fluctuations because the price of raw materials, such as gold or other metals, is largely demand driven.

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    The chemicals industry is part of the basic materials sector which, as of 2015, is the highest dividend-paying sector on ... Read Full Answer >>
  5. What are the primary reasons for investing in the chemicals sector?

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    The automotive sector uses a wide range of materials in manufacturing. Metals such as aluminum and steel, advanced plastics ... Read Full Answer >>
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    The forest products sector is comprised of companies involved in growing, harvesting and/or processing wood and wood fiber, ... Read Full Answer >>
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    Under the purview of the basic materials sector, investors have the opportunity to gain exposure to companies engaged in ... Read Full Answer >>
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