The Specialty Chemicals Market Volume Index, a tool created by the American Chemistry Council (ACC) entered the fourth quarter on a tepid note, slipping back 0.1% on a three-month moving average (3MMA) basis in October after a 0.3% gain in September and a weak first half of the year. Weakness in 2015 continues to be centered in oilfield chemicals and a few other segments that combined weighed on overall volumes. Of the 28 specialty chemical segments monitored, 16 expanded in October, one was flat and 11 declined. Although there was weakness beyond oil chemicals during October, market volumes excluding oilfield chemicals were essentially flat, suggesting some stabilization of overall U.S. industrial activity.
The overall specialty chemicals volume index was off 1.4% year-over-year (Y/Y) also on a 3MMA basis. Year-earlier comparisons were generally in the 4.0% to 6.8% range during 2012-2014 but since February of this year they have fallen below that range as the downturn in the oil and gas sectors affected headline volumes. In addition, the strong U.S. dollar has adversely affected a number of export-oriented customer industries. Still, on a Y/Y basis, gains are fairly widespread among most market and functional specialty chemical segments, and, in some cases, they are improving. Compared to last year, October volumes were up in 19 segments and down in 10 segments. That said the year-earlier comparisons have been moderating.
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