According to American Chemistry Council (ACC) Weekly Chemistry & Economic Trends report on January 27, 2023, chemical railcar loadings were down to 31,038 for the week ending January 21. Loadings were down 9.6% Y/Y (13-week MA), down (11.9%) YTD/YTD and have been on the rise for 8 of the last 13 weeks.
The U.S. Chemical Production Regional Index (U.S. CPRI) fell by 1.5% in December following declines of 0.3% in October and 0.8% in November. Chemical output was lower than a month ago in all regions, with the largest declines in the Gulf Coast, home to much of the nation’s basic industrial chemical and synthetic materials capacity. The declines reflect not only, declining output across multiple key end-use industries and weak export markets, but also disruptions from winter storm Elliott that hit in late December. Many chemical facilities along the U.S. Gulf Coast shut down in preparation of the freezing temperatures.
The U.S. CPRI is measured as a three-month moving average (3MMA) and was developed by ACC to track chemical production activity in seven regions of the United States.
On a 3MMA basis, chemical production within segments was mostly negative in December. Only fertilizer output was higher. Production in all other segments was down compared to a month earlier.
As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. Following a decline of 0.2% in November, manufacturing output was down 0.7% in December on a 3MMA basis. The 3MMA trend in manufacturing production was mixed, with many segments contracting. Output continued to expand, however, in motor vehicles, aerospace, appliances, food & beverages, printing, and apparel.
Compared with December 2021, U.S. chemical production was 3.2% lower. Chemical production was lower than a year ago in all regions, except the Northeast. The steepest decline was in the Gulf Coast.
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.
