ACC Reports Three-Month Market Decline

July 20, 2016
The U.S. specialty chemicals market declines for third consecutive month, ending second quarter on a soft note.

The Specialty Chemicals Market Volume Index, a tool created by the American Chemistry Council (ACC), slipped 0.4% in June. This follows a 0.3% decline in May and a 0.5% decline in April. All data is measured on a three-month moving average (3MMA) basis. Of the 28 specialty chemical segments monitored, 11 expanded in June, two were stable and the remaining 15 declined, according to ACC. Large gains (1.0% and over) were noted only in rubber processing chemicals.

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 2015, they have fallen below that range as the downturn in the oil and gas sectors reportedly affected headline volumes. In addition, the strong U.S. dollar has adversely affected a number of export-oriented customer industries, according to ACC. Weakness spread to other segments as well and year-earlier comparisons have been negative since second quarter 2015.  Still, on a Y/Y basis, there were reportedly gains among market and functional specialty chemical segments. With few exceptions, however, year-earlier comparisons have been moderating, according to ACC.

For more information, visit: www.americanchemistry.com

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