According to American Chemistry Council (ACC) Weekly Chemistry & Economic Trends report January 20, 2023, chemical producer prices fell by 0.8% in December, the sixth consecutive monthly decline. Declining prices for bulk petrochemicals & organics, plastic resins, synthetic rubber, and manufactured fibers were only partially offset by higher prices for agricultural chemicals, consumer products, coatings, and other specialty chemicals. Prices for inorganic chemicals were flat in December. Compared to a year ago, chemical prices remained ahead by 7.3%. For all of 2022, chemical prices were up 15.5%.
According to data released by the Association of American Railroads, chemical railcar loadings were up 4,437 to 31,793 for the week ending 14 January. Loadings were down 9.5% Y/Y (13-week MA) and have been on the rise for 8 of the last 13 weeks.
Chemical production fell sharply in December, down by 3.1%, reflecting a combination of weaker demand for chemicals and a pre-Christmas freeze that caused temporary shutdowns along the U.S. Gulf Coast. There were month-on-month declines across nearly all segments, except agricultural chemicals. Production was 5.9% lower than last December. Chemical capacity utilization fell 2.7 points to 74.4%, the lowest rate since Winter Storm Uri hit in February 2021.
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.
