According to American Chemistry Council (ACC) Weekly Chemistry & Economic Trends report on May 26, 2023, chemical railcar loadings were up slightly (by 211 railcars) to 31,588 for the week ending 20 May. Loadings were down 4.9% Y/Y (13-week MA), down 5.2% YTD/YTD and have been on the rise for 7 of the last 13 weeks according to data released by the Association of American Railroads.
The U.S. Geological Survey reported that monthly production of soda ash in March was 868 thousand tons, up 4.5% compared to the previous month and down 11.7% Y/Y. Stocks fell 25.2% declined to 231 thousand tons at the end of the month, an 8-day supply. Ending stocks were down 18.9% Y/Y.
ACC’s U.S. Chemical Production Regional Index (U.S. CPRI) rose 0.5% in April. The index is measured on a three-month moving average (3MMA) basis to reduce month-to-month volatility. The gain in April reflects incremental improvement across several chemistries, especially those recovering from production outages during Q1. Going into Q2, inventories have moved into a more balanced position, and despite slowing momentum in manufacturing, several end-use markets have improved, in particular, motor vehicle production. U.S. chemical output was higher than a month ago in all regions, with the largest gain in the Gulf Coast, which has largely recovered after some production outages during Q1. Output remained lower than a year ago, however. Output of fertilizers, consumer products, organic chemicals, plastic resins, and inorganic chemicals trended higher. These gains were offset by lower production of synthetic rubber, paints & coatings, adhesives, and other specialty chemicals. Production of manufactured fibers was essentially flat.
The Global Chemical Production Regional Index (CPRI) rose 0.4%(e) in April, according to data compiled by ACC. The gain follows a 1.6%(r) gain in March. Like the U.S. CPRI, the global CPRI is measured on a seasonally adjusted 3-month moving average basis. Chemical output was higher in all regions except South America. The largest gains in April were the Former Soviet Union (+0.8%) and Africa & Middle East (+0.5%). Output in Asia-Pacific rose 0.4%, including a 0.6% gain in Chinese chemical production. Within segments, the largest gains were in synthetic materials (0.6%), and coatings (+0.6%). Additional details on the Global CPRI will be available to members on ACCExchange in the next week or send an email to David_lan@americanchemistry.com to be added to a distribution list for the Global CPRI report.
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.
