Global chemicals production ends Q3 on soft note

Developed from government industrial production indices for chemicals from over sixty-five nations accounting for about 98 per cent of the total global business of chemistry

Gains were registered in pharmaceuticals, agricultural chemicals, organic chemicals, and coatings. Plastics resins activity was flat

WASHINGTON – The American Chemistry Council’s Global Chemicals Production Regional Index (Global CPRI) shows that growth in the industry has been nearly flat most of 2016.

The headline index for Sept. showed no gain or loss on a three-month moving average (3MMA) basis.

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This follows six months of relatively stable activity after a fairly strong fourth quarter 2015. During Sept., chemical production increased in North America and Western Europe but fell elsewhere.

The Global CPRI was up 1.6 percent year-over-year on a 3MMA basis and stood at 108.5 percent of its average 2012 levels in Sept..

During Sept., capacity utilization in the global business of chemistry declined 0.3 percentage points to 78.8 per cent.

This is off from 80.3 per cent last Sept. and is below the long-term (1987-2015) average of 89.1 per cent.

Results were mixed on a product basis during Sept., with weakness centered in the production of consumer products, inorganic chemicals, synthetic rubber, manufactured fibers, and other specialties.

Gains were 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 production indices and features a similar base year where 2012=100.

This index is developed from government industrial production indices for chemicals from over sixty-five nations accounting for about 98 per cent of the total global business of chemistry.

This data is the only timely source of market trends for the global chemical industry and are comparable to the US CPRI data, a timely source of US regional chemical production.