Wholesale trade in chemicals rose 0.5% (to $9.96 billion) during February, according to the latest Weekly Chemistry and Economic Report from the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com), but at the same time, inventories climbed 0.1% to $12.81 billion. This resulted in an inventory-to-sale ratio of 1.29 months’ supply, up from a 1.14 ratio in February of last year, the ACC report says. Overall, sales were off by 5.9% year-over-year, while inventories were up 6.5% year-over-year.
“This compares unfavorably to February 2015,” the ACC says, “It is at this stage of the supply chain where a large inventory imbalance has occurred.”
Other chemical-industry-related economic data included in the report had to do with chemical exports and railcar loadings. Chemical exports rose 1.0% in February to $9.7 billion, the ACC report says, “driven by increased exports of consumer products, agricultural chemicals, petrochemical derivatives and other industrial chemicals (including plastic resins).”
Exports of bulk petrochemicals and intermediates declined, the report notes. “At the same time, imports of chemicals were down 0.6%, reflecting gains in specialties and consumer products that were offset by declines in agricultural chemicals, inorganics, bulk petrochemicals and intermediates, and petrochemical derivatives and other industrial chemicals (including plastic resins).” Year-to-date, net exports of chemicals is $4.7 billion.