According to the American Chemistry Council (ACC), the U.S. Chemical Production Regional Index (U.S. CPRI), fell by 1.1% in June on a three-month moving average (3MMA) basis following a 2.0% decline in May and a 3.0% decline in April. During June, chemical output fell across all regions, with the steepest declines in the Gulf Coast, Midwest and West Coast regions.
Deemed an essential industry by the U.S. Department of Homeland Security, chemical production eased on a 3MMA basis, with declines in segments except chlor-alkali, industrial gases, other basic inorganic chemicals, and consumer products, which were slightly higher. Within several major segments, production of some chemical materials increased, including supply chains tied to PPE and disinfection products.
At the same time, specialty chemicals market volumes increased by 3.6% in June, an improvement from the revised 1.2% gain in May and the record 12.6% decline in April. During June, overall specialty chemicals volumes were off 11.7% on a year-over-year (Y/Y) basis. Volumes stood at 99.0% of their average 2012 levels in June. This is equivalent to 6.74 billion pounds (3.06 million metric tons). On a Y/Y basis, gains occurred in only cosmetic additives, electronic chemicals and flavors and fragrances. On a Y/Y basis, diffusion was 12%, an improvement from May and April but sharply lower than at the start of the year.
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