Winter Storms Disrupt U.S. Chemical Production In March

April 30, 2021
The U.S. Chemical Production Regional Index fell 2.8% in March following a 3.9% decline in February and a 0.6% increase in January, according to the American Chemistry Council.

The U.S. Chemical Production Regional Index (U.S. CPRI) fell 2.8% in March following a 3.9% decline in February and a 0.6% increase in January, according to the American Chemistry Council (ACC). Chemical output fell in all regions as the impact of the February winter storm continued to disrupt chemical production in the Gulf Coast and parts of the country that rely on raw materials from the region. The U.S. CPRI is measured as a three-month moving average (3MMA) basis.

As measured on a 3MMA basis, chemical production was mixed in March with improvement occurring in the production of chlor-alkali, adhesives, coatings, other specialties, manufactured fibers, synthetic rubber and fertilizers. These gains were offset by continued weakness in organic chemicals, plastic resins industrial gases, synthetic dyes and pigments, other inorganic chemicals, crop protection chemicals and consumer products.

As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. After declining in March, manufacturing output edged 0.1% higher in April. The trend in manufacturing production was mixed with gains in the output of food and beverages, appliances, aerospace, construction supplies, machinery, fabricated metal products, computers and electronics, semiconductors, refining, foundries, rubber products, structural panels, textile product mills, apparel and furniture.

Compared with March 2020, U.S. chemical production remained off by 5.8% on a year-over-year basis, the 22nd consecutive month of Y/Y declines and a deterioration reflecting the lingering impact of the winter storms. Chemical production was lower than a year ago in all regions.

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