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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, ACC’s 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. |
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