According to American Chemistry Council (ACC) Weekly Chemistry & Economic Trends report on April 14, 2023, chemical railcar loadings were down 5.5% to 31,525 for the week ending 8 April. Loadings were down 8.4% Y/Y (13-week MA), down 7% YTD/YTD and have been on the rise for 7 of the last 13 weeks according to data from the Association of American Railroads.
At the wholesale level, chemical sales increased 1.2% in February, following a 4.1% fall in January. Chemical wholesale inventories edged lower by 1.0% following a 1.4% decline in December. Compared to last February, sales were down 2.2% Y/Y while inventories were 4.8% Y/Y higher. The inventories-to-sales ratio for chemicals declined from 1.22 in January to 1.19 in February. Last February, the ratio was 1.11.
Chemical production was down 1.7% in March following two months of gains. Chemical production fell across sectors with the exception of fertilizers which rose in March. Overall, chemical production was down 3.4% Y/Y. Capacity utilization was lower in March, down to 79.9% and off from 82.4% a year earlier.
Chemical producer prices were flat in March. Higher prices for plastic resins and other specialty chemicals offset declines in synthetic rubber, bulk petrochemicals, and agricultural chemicals. Other chemical sectors remained relatively flat. Chemical prices were up 2.3% Y/Y.
Chemical import prices fell 1.3% in March and were down 8.4% Y/Y. At the same time chemical export prices edged up 0.8% but were down 5.7% Y/Y.
Note On the Color Codes
The banner colors represent observations about the current conditions in the overall economy and the business chemistry. For the overall economy we keep a running tab of 20 indicators. The banner color for the macroeconomic section is determined as follows:
Green – 13 or more positives
Yellow – between 8 and 12 positives
Red – 7 or fewer positives
For the chemical industry there are fewer indicators available. As a result we rely upon judgment whether production in the industry (defined as chemicals excluding pharmaceuticals) has increased or decreased three consecutive months.
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ACC_EconomicsDepartment@americanchemistry.com
American Chemistry Council
The American Chemistry Council (ACC) represents the leading companies engaged in the multibillion-dollar business of chemistry. ACC members apply the science of chemistry to make innovative products, technologies and services that make people's lives better, healthier and safer. ACC is committed to improved environmental, health, safety and security performance through Responsible Care®; common sense advocacy addressing major public policy issues; and health and environmental research and product testing. ACC members and chemistry companies are among the largest investors in research and development, and are advancing products, processes and technologies to address climate change, enhance air and water quality, and progress toward a more sustainable, circular economy.
