MOSCOW (MRC) -- The Chemical Activity Barometer (CAB), a leading economic indicator created by the American Chemistry Council (ACC), increased 1.2% on a sequential three-month-moving-average (3MMA) basis in May, according to CISION with reference to ACC's statement.
This follows a 1.0% increase in April. The CAB was up 18.6% on a year-on-year (YOY) basis, as the year-ago period included the deep trough of the COVID-19 recession.
“The latest CAB reading is consistent with marked expansion of commerce, trade, and industry,” says Kevin Swift, chief economist at ACC.
In May, production-related indicators were positive. Despite some recent weakness in housing - a reflection of higher interest rates and prices as well as labor and supply-side constraints - trends in construction-related resins and related performance chemistry were solid. Aided by strength in automotive markets, resins and chemistry used in other durable goods were strong. Gains in plastic resins used in packaging and for consumer and institutional applications were positive. Performance chemistry for industry was largely positive. Exports were positive, while equity prices gained, reaching new records. Product and input prices were positive, as were inventory and other supply chain indicators.
As MRC informed before, Russia's output of chemical products rose in March 2021 by 5.4% year on year. Thus, production of basic chemicals increased year on year by 6.7% in the first moths months of 2021. March production of polymers in primary form was 958,000 tonnes versus 861,000 tonnes in February. Overall output of polymers in primary form totalled 2,740,000 tonnes over the stated period, up by 8.5% year on year.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC