Demand for US Gulf basic chemicals on rise - trade group

21 May 2010 18:32  [Source: ICIS news]

HOUSTON (ICIS news)--US Gulf coast chemical production in April rose by 0.7% from March as basic chemicals demand increased, the American Chemistry Council (ACC) said on Friday.

The US Gulf coast region - dominated by of building block materials such as petrochemicals, inorganics and synthetic materials - also gained 0.8% in March, the ACC noted in its weekly economic report.

“It is apparent that demand for many of the basic chemicals produced in the Gulf coast region continues to build momentum,” the ACC said.

However, overall US production slipped 0.1% in April from March as gains in basic chemicals, inorganics, bulk petrochemicals, organic intermediates and coatings were partially offset by production declines in industrial gases, artificial fibres, synthetic rubber and adhesives, the group said.

Meanwhile, the ACC's global production index rose 0.6% in April largely as a result of the Asia-Pacific region.

The ACC also noted that Latin America rose for the 11th time in the past 14 months.

The increase in the global production index was the 13th in 14 months, suggesting a V-shaped recovery for the global chemical marketplace, the ACC said.

The May edition of the ACC’s Economic Forecasters Survey revealed that expectations for US economic growth were more optimistic for 2010.

US gross domestic product (GDP) was expected to rise by 3.3% in 2010, a 0.2 percentage point improvement from April’s survey.

This year's expectations for consumer spending, business investment, housing starts and industrial production were all higher in the May survey relative to April.

A pair of manufacturing surveys from the New York and Philadelphia Federal Reserve branches indicated continued economic improvement in May for manufacturers in those regions, but at a lower pace than April.

Meanwhile, “the existential crisis in the Eurozone continues and fear has returned,” the ACC cautioned. “Global equity market jitters continue.”

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By: Ben DuBose
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