US Chemical Industry With Month-on-Month Gains in 2014
US chemical production recorded its fifth straight monthly gain in May with higher production in all regions except the west coast, the American Chemistry Council (ACC) reports. A rebound in manufacturing activity - after a long, cold winter - contributed to the rise, says the organization representing chemical producers.
The US Chemical Production Regional Index (CPRI) nudged up 0.4% in May, following a 0.6% increase in April.
May figures showed continued gain in chemical output on the Gulf coast, where production rose 1% month-on-month - a higher rate than any other region. Among consumer industries, gains in demand were seen from the aerospace, construction, appliances, motor vehicles, machinery, fabricated metal products, computers, semiconductors, plastic and rubber products, paper and furniture sectors.
As in April, chemical production was again mixed across the segments, ACC said. Gains across chlor-alkali and other inorganic chemicals, plastic resins, synthetic rubber, synthetic dyes and pigments, industrial gases, consumer products and organic chemicals were partly eaten up by declines in pharmaceuticals, fertilizers, pesticides, manmade fibers, coatings and adhesives.
Overall chemical production was up 2.1% year over year in May with gains recorded across all seven national regions. Cumulative output gains since the beginning of 2014 were 1.4% higher than at the same point in 2013.
While a still-challenging economic backdrop in Europe remains a roadblock, ACC expects the chemical industry to fare relatively better this year, aided by a shale gas boom in the US, strength across agriculture and automotive markets, healthy demand in emerging geographies and significant capital investment by chemical producers.
ACC expects chemical production nationwide to increase by 2.5% in full year 2014 (1.6% in 2013) and further improve to 3.5% in 2015, supported by strong agricultural market fundamentals, healthy demand from light vehicles market and a revival in the housing market.
Globally, the trade grouping projects that output from American sources will rise 3.8% in 2014 and 4.1% next year, with healthy gains expected across North America and emerging markets.
