Market Trend Global Chemicals Output Rebounds in June, Claims ACC
The American Chemistry Council (ACC) has reported that owing to the growth in China, global chemicals production rose by 0.6 % in June which is an improvement from the 0.5 % decline in May this year.
Washington/USA – Data collected and tabulated by the American Chemistry Council (ACC) show that due to growth in China, global chemicals production rose by 0.6 per cent in June, an improvement from the 0.5 per cent decline in May. Production has been declining throughout this year, with the last monthly gain occurring in December 2019. During June, chemical production fell in major regions except Asia-Pacific. Headline global production was off 7.2 per cent year-over-year (Y/Y) on a three-month moving average (3MMA) basis and was off 7.4 per cent from the peak December level. Global output stood at 109.8 per cent of its average 2012 levels.
During June, global capacity was stable and was up 2.6 per cent Y/Y. With improving production, capacity utilisation in the global chemical industry increased by 0.5 points to 75.3 per cent. This is down from 83.2 per cent last June and below the long-term (1987-2017) average of 86.5 per cent.
Among chemical industry segments, June results were generally positive, with gains in segments except bulk petrochemicals and organics and coatings providing support. Compared with a year earlier, growth was absent in all segments, with a strong decline in coatings.
ACC’s Global Chemical Production Regional Index (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 more than 65 nations accounting for about 98 per cent 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.