US chem railcar loadings could stall - Deutsche

26 March 2007 16:09  [Source: ICIS news]

TORONTO (ICIS news)--The recent strength in US chemical railcar loadings could stall due to still weak chemical commodity demand, analysts at Deutsche Bank said on Monday.


The analysts said that chemical railcar loadings rose by 1.3% for the week ended 17 March, compared with the same week in 2006, and the four-week moving average rose 3.6% year-over-year.


However, the improvement in chemical loadings may stall soon, given widespread agreement in the industry that seasonally stronger commodity demand has yet to appear, Deutsche said.


“Chemical railcar loadings represent only 21% of chemical volumes by tonnage, but provide an early glimpse of broader trends in the chemical and manufacturing sectors,” it added.


The analysts also noted the weak index of leading indicators and forecasts of low US economic growth.


“Our US economics team maintains its GDP growth forecast of 1.8% [annual rate] in the first quarter and 2.0% in 2007 overall,” Deutsche said.

By: Stefan Baumgarten
+1 713 525 2653

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