Global Chemical Production Remains Flat

Nov. 2, 2016
The American Chemistry Council’s Global Chemical Production Regional Index shows no gain or loss for September.

The American Chemistry Council’s Global Chemical Production Regional Index (Global CPRI) shows that growth in the industry has been nearly flat most of the year thus far. The headline index for September shows no gain or loss on a three-month moving average (3MMA) basis. This follows six months of relatively stable activity after a fairly strong fourth quarter 2015, according to the ACC. During September, chemical production reportedly increased in North America and Western Europe but fell elsewhere. The Global CPRI was up 1.6% year-over-year (Y/Y) on a 3MMA basis and stood at 108.5% of its average 2012 levels in September.

During September, capacity utilization in the global business of chemistry declined 0.3 percentage points to 78.8%, according to the ACC. This is off from 80.3% last September and is below the long-term (1987-2015) average of 89.1%. Results were mixed on a product basis during September, with weakness centered in the production of consumer products, inorganic chemicals, synthetic rubber, manufactured fibers and other specialties, according to ACC. Gains were reportedly registered in pharmaceuticals, agricultural chemicals, organic chemicals and coatings. Plastics resins activity was flat.

ACC’s Global CPRI measures the production volume of the business of chemistry for thirty-three key nations, sub-regions and regions, all aggregated to the world total. The index is comparable to the Federal Reserve Board (FRB) production indices and features a similar base year where 2012=100. The index is developed from government industrial production indices for chemicals from over 65 nations accounting for about 98% of the total global business of chemistry.

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