The Global Chemical Production Regional Index (Global CPRI), compiled by the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) shows that the 2nd quarter continued on a soft note, with the headline index rising only 0.1% on a 3MMA basis. This follows four months of stable activity but a fairly strong 4th quarter. The information was contained in the ACC’s latest Weekly Chemical and Economic Report.
During May, chemical production increased in North America, Central & Eastern Europe and Africa & the Middle East; was flat in Western Europe and Asia-Pacific; and fell in Latin America, the ACC report says. The Global CPRI was up 1.9% Y/Y on a 3MMA basis and stood at 108.3% of its average 2012 levels. Global capacity utilization declined 0.2 percentage points to 79.3%, off from 81.0% last May and below the long-term (1987-2015) average of 89.2%, the report adds.
In North America, the report says production rose 0.2%, up 1.3% Y/Y. In the U.S., production gained 0.1% on a 3MMA basis, with gains in inorganic chemistry, plastic resins, adhesives, other specialties, fertilizers, and crop protection partially offset by lower production of organic chemicals, synthetic rubber, manufactured fibers, coatings, consumer products, and pharmaceuticals. Canadian production advanced while Mexican chemical production declined, ACC notes.
In Latin America, production was off 5.6% Y/Y. On a Y/Y basis, Latin America is the weakest-performing region with chemical production off in Brazil as well as in Argentina, Colombia and Venezuela. Production was up in Chile, Peru and Uruguay.
In Western Europe, chemical production was flat during May and was up only 0.3% Y/Y. In Central and Eastern Europe, Y/Y growth was led by Russia (production was up 2.6%), the ACC report says.
Chemical production in Africa and the Middle East rose in May and was up 7.1% Y/Y, the strongest regional showing, the report says. Chemical production in the Asia-Pacific region was flat in May with weakness centered in India, South Korea and Singapore. Activity was flat in China but up elsewhere.