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US chemical production rises 0.8% in January - ACC

March 03/2021

MOSCOW (MRC) -- The US Chemical Production Regional Index (US CPRI) rose 0.8% in January following a 1.4% gain in December and a 1.1% gain in November, according to CISION with reference to the American Chemistry Council (ACC).

During January, chemical output expanded in nearly all regions. The Gulf Coast region showed the largest gain, with smaller gains seen in the Midwest, Southeast, Ohio Valley, and Northeast regions. Output was flat in the Mid-Atlantic region and edged lower in the West Coast. The US CPRI is measured on a three-month moving average (3MMA) basis.

Chemical production continued to expand in chlor-alkali, fertilizers, organic chemicals, synthetic rubber, plastic resins, manufactured fibers, industrial gases, and synthetic dyes and pigments, measured on a 3MMA basis. Production eased for coatings, adhesives, crop protection, consumer products, and other specialty chemicals.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. The manufacturing recovery continued for a sixth consecutive month in January, with overall factory activity up by 1.0% (3MMA). The trend in production increased in many key chemistry end-use industries, with the strongest gains seen in food and beverages, appliances, motor vehicles, aerospace, construction supplies, fabricated metal products, iron and steel products, petroleum refining, oil and gas extraction, plastic products, structural panels, textile products, and furniture.

Compared with January 2020, US chemical production remained off by 0.6% on a year-over-year (Y/Y) basis, the twentieth straight month of Y/Y declines, but showed continued improvement compared with earlier in the year. Chemical production remained lower than a year ago in all regions except in the Gulf Coast region, which was up 2.5% Y/Y.

The chemistry industry is one of the largest industries in the United States, a USD565 billion enterprise. The manufacturing sector is the largest consumer of chemical products, and 96% of manufactured goods are touched by chemistry. The US CPRI was developed to track chemical production activity in seven regions of the United States. The US CPRI is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. Thus, the reading in January reflects production activity during November, December, and January.

As MRC informed before, ACCТs chemical activity barometer (CAB), a leading economic indicator and composite index of industry activity, rose 1.5% in January, following a 1.3% increase in December, on a sequential three-month moving average (3MMA). The barometer was up 1.3% on a year-on-year (YOY) basis in January.

We remind that Russia's output of chemical products rose in November 2020 by 9.5% year on year. At the same time, production of basic chemicals increased in the first eleven months of 2020 by 6.6% year on year, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-November 2020 output. November production of polymers in primary form rose to 896,000 tonnes from 852,000 tonnes in October. Overall output of polymers in primary form totalled 9,240,000 tonnes over the stated period, up by 17.1%  year on year.

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

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.

The American Chemistry Council (ACC) represents the leading companies engaged in the business of chemistry.  ACC members apply the science of chemistry to make innovative products and services that make people's lives better, healthier and safer.  ACC is committed to improved environmental, health and safety performance through Responsible Care, common sense advocacy designed to address major public policy issues, and health and environmental research and product testing.  The business of chemistry is a $565 billion enterprise and a key element of the nation's economy.  It is one of the nation's largest exporters, representing ten cents out of every dollar in U.S. exports. Chemistry companies are among the largest investors in research and development.  Safety and security have always been primary concerns of ACC members, and they have intensified their efforts, working closely with government agencies to improve security and to defend against any threat to the nation's critical infrastructure.


mrcplast.com
Author:Margaret Volkova
Tags:pigments, PP, PE, crude and gaz condensate, homopolymer PP, propylene, LDPE, HDPE, PET-granulate, rigid caustic soda, ethylene, fibers/filaments, coatings, car components, gas processing, furniture, fertilizers, petrochemistry, adhesives, construction, textile, other bottles, ,
Category:General News
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