The American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) reported that U.S. specialty chemicals market volumes ended the first quarter on a strong note, rising 0.6 percent in March. This follows a similar 0.6 percent gain in February. Volumes have generally been moving up since May. All changes in the data are reported on a three-month moving average (3MMA) basis. Of the twenty-eight specialty chemical segments we monitor, twenty expanded in March, five markets experienced decline and three were flat. During March, large gains (1.0 percent and over) occurred in mining chemicals and oilfield chemicals.
The overall specialty chemicals volume index was up 1.9 percent on a year-over-year (Y/Y) 3MMA basis. The index stood at 106.1 percent of its average 2012 levels. This is equivalent to 7.34 billion pounds (3.33 million metric tons). The downturn in the oil and gas sector had affected headline volumes and weakness spread to other segments. Year-earlier comparisons were negative from second quarter 2015 through second quarter 2016 but are now improving as the recovery in the oil and gas sector has engaged and is now aiding head-line volumes. On a Y/Y basis, there were gains among 19 market and functional specialty chemical segments.
Specialty chemicals are materials manufactured on the basis of the unique performance or function and provide a wide variety of effects on which many other sectors and end-use products rely. They can be individual molecules or mixtures of molecules, known as formulations. The physical and chemical characteristics of the single molecule or mixtures along with the composition of the mixtures influence the performance end product. Individual market sectors that rely on such products include automobile, aerospace, agriculture, cosmetics and food, among others.
Specialty chemicals differ from commodity chemicals. They may only have one or two uses, while commodities may have multiple or different applications for each chemical. Commodity chemicals make up most of the production volume in the global marketplace, while specialty chemicals make up most of the diversity in commerce at any given time, and are relatively high value with greater market growth rates.