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Weekly N. America chemical rail shows continuing strong recovery

October 15/2020

MOSCOW (MRC) -- North American chemical rail traffic continued to strengthen during the week ending 10 October, narrowing the year-over-year (YOY) gap with respect to both the four-week moving average (4wma) and the year-to-date total, said Chemweek.

On a four-week basis, volume was down 1.2% from 2019 and 3.3% from 2018, versus shortfalls of 2.8% and 5.9%, respectively, during the period ending 3 October (chart). Year-to-date, volume was down 4.3% from 2019 and 5.6% from 2018, versus respective shortfalls of 4.4% and 5.8%, respectively, for the year through 3 October.

Weekly volume totaled 43,633 carloads, up 3.4% YOY on gains in Canada and Mexico, and down 3.0% from the previous week, according to data released on 14 October by the Association of American Railroads (AAR).

Chemical railcar traffic in the United States contributed 31,035 carloads to the total, up 0.5% YOY and down 1.1% from the previous week. For the year to date, US chemical railcar traffic was down 5.0%.

Canadian chemical rail traffic totaled 11,620 carloads, up 11.0% YOY and down 8.3% from the previous week. For the year to date, Canadian chemical railcar traffic was down 2.2%.

Chemical railcar traffic in Mexico totaled 978 carloads, a YOY increase of 13.1% and a sequential increase of 3.7%. For the year to date, Mexican chemical railcar traffic was down 5.8%.

As MRC informed earlier, Chemical railcar traffic in North America held stable during the week ended 19 September.  Volume totaled 42,933 carloads, up 2.7% from the previous week and down 3.8% year over year (YOY). On a four-week basis, volume was down 3.4% from 2019 and 5.8% from 2018, improving over respective shortfalls of 3.8% and 6.6% recorded the previous week (chart). For the year to date, chemical railcar traffic in North America was down 4.5% from 2019 and 5.8% from 2018, equal to the previous weeks figures.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's overall PE production totalled 1,712,400 tonnes in the first seven months of 2020, up by 58% year on year. Linear low density polyethylene (LLDPE) accounted for the greatest increase in the output. At the same time, overall PP production in Russia increased in January-July 2020 by 24% year on year to 1,063,700 tonne. ZapSibNeftekhim accounted for the main increase in the output.


mrcplast.com
Author:Anna Larionova
Tags:North America, CIS, petroleum products, crude oil, neftegaz, petrochemistry.
Category:General News
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