The Specialty Chemicals Market Volume Index, a tool created by the American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com), showed that U.S. specialty chemicals market volumes were essentially flat in October. This follows a revised 0.2 percent gain in September and 0.3 percent gain in August. All changes in the data are reported on a three-month moving average (3MMA) basis. Of the 28 specialty chemical segments monitored by ACC, nine expanded in October, four were stable and the remaining 15 markets experienced decline. During October, large gains (1.0 percent and over) were noted in mining chemicals.
The overall specialty chemicals volume index was off 2.0 percent year-over-year (Y/Y) on a 3MMA basis. The index stood at 104.0 percent of its average 2012 levels. This is equivalent to 7.17 billion pounds (3.25 million metric tons). During 2014, Y/Y comparisons were generally in the 4.0 percent to 6.8 percent range but since February 2015, they have fallen well below that range as the downturn in the oil and gas sector affected headline volumes. Weakness spread to other segments as well and year-earlier comparisons have been negative since second quarter 2015. Lately, the year-earlier declines have been moderating. On a Y/Y basis, there were gains among 12 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.