Global Chemicals Production running Slow in 2019

According to reports from the American Chemistry Council (ACC), global chemicals production outputs are lower in 2019, with a rise of 0.2% in January, followed by a rise of 0.1% in February.

During February, chemical production gained in Europe, Africa and the Middle East. Low activity was noted in Latin America and Asia-Pacific. With softness earlier last year, the Global CPRI was up 1.7 percent year-over-year (Y/Y) on a three-month moving average (3MMA) basis and stood at 116.6 percent of its average levels in 2012.

During February, capacity utilization in the global chemical industry slipped 0.2 points to 83.1%. This is down from 84.8% February 2018 and below the 1987-2017 average of 86%.

Among chemical industry segments, February results were mixed on a product basis, with gains in inorganic chemicals, bulk petrochemicals and organics plastic resins, manufactured fibres, and other specialties. Comparing the numbers with 2018, growth was strongest in bulk petrochemicals, organics, and plastic resins, followed by manufactured fibres and coatings.

ACC’s Global CPRI measures the production volume of the chemical industry for 33 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. This index is developed from government industrial production indices for chemicals from over 65 nations accounting for about 98 percent of the total global chemical industry. This data set is the only timely source of market trends for the global chemical industry and is comparable to the U.S. CPRI data, a timely source of U.S. regional chemical production.