US chemical output to grow by 1.6% in 2013, 2.5% in '14 − ACC

12 December 2013 23:24  [Source: ICIS news]

HOUSTON (ICIS)--US chemical output will continue growing this year, rising by 1.6% this year versus a gain of 0.1% in 2012, the American Chemistry Council (ACC) said in its year-end situational report.

By 2014, production should increase by 2.5%, the ACC said. In 2015, growth will reach 3.5%.

By the second half of the decade, growth in US chemistry will exceed 4%/year, a rate exceeding that of the overall US economy, the ACC said. 

The ACC expects strong growth in plastics and organic chemistry because of a revival in export markets. Production of specialty chemicals will be driven by strong demand from end-use markets, particularly automobiles and housing.

Consumer products should report strong gains this year, but these will moderate in 2014 and 2015, the ACC said. Meanwhile, demand for agricultural chemicals will revive.

Next year, utilisation rates should improve because plant capacity will likely remain stable while actual production will increase, the ACC said.

After 2015, US chemical producers should begin bringing new capacity on line, as they attempt to take advantage of low-cost feedstock brought about by the advent of shale gas, the ACC said. Consequently, American chemistry revenues will exceed $1,000bn (€730bn) by 2018.

In fact, the ACC declared the US the prime location for capital spending in the industry. By 2018, capital spending for the US chemical industry will reach $61bn, compared with $618bn for the world.

"With high profit margins, a low cost of capital and the opportunities afforded by shale gas, prodigious increases in new plant and equipment investment in the US are forthcoming," the ACC said.

Gains in olefins capacity will reach 35-40%, the ACC said. More than 135 new chemical projects, valued at more than $90bn, have been announced through early December.

The following lists the ACC's production volumes for the US chemistry industry.

 

% Change Year-over-Year

2010

2011

2012

2013

2014

2015

2016

2017

2018

Average

2019-23

Total Chemicals Production Volume

3.3

0.0

0.1

1.6

2.5

3.5

4.0

4.1

4.0

3.4

 

Production Volume by Segment

Pharmaceuticals

-6.9

1.6

-3.2

-0.7

2.3

3.5

4.3

4.4

4.6

4.2

Chemicals, excl. Pharmaceuticals

10.0

-0.9

2.1

3.2

2.6

3.5

3.8

4.0

3.6

2.9

Consumer Products

1.5

5.1

5.2

5.5

2.0

2.2

2.3

2.3

2.2

2.3

Agricultural Chemicals

4.3

-5.9

-3.2

2.3

1.4

1.9

3.7

4.8

3.0

1.3

Fertilizers

12.2

-12.0

-9.5

2.0

1.4

2.2

4.9

5.9

3.8

1.8

Crop Protection

-4.9

6.1

11.5

2.5

1.4

1.7

2.9

3.9

2.4

1.0

Specialties

10.4

-1.3

6.9

4.8

3.2

3.6

3.5

3.0

2.9

2.7

Coatings

9.9

0.4

9.0

7.2

3.3

3.3

3.6

3.2

3.2

3.3

Other Specialties

10.6

-1.9

6.0

3.8

3.2

3.7

3.4

3.0

2.7

2.5

Basic Chemicals

16.2

-2.3

0.6

1.2

2.4

4.2

4.5

4.4

3.9

3.1

Inorganic Chemicals

11.7

-3.0

4.7

-0.8

1.2

4.2

4.5

3.3

2.3

2.0

Bulk Petrochemicals & Organics

18.8

-1.2

-1.6

1.6

2.9

4.5

4.6

5.0

4.9

3.6

Plastic Resins

14.3

-6.1

1.6

2.5

2.7

4.2

4.7

4.8

4.0

3.4

Synthetic Rubber

14.5

4.6

7.1

1.3

2.6

4.2

4.2

3.6

3.4

2.7

Man-Made Fibers

33.6

5.2

4.3

0.7

0.1

0.4

0.1

0.9

1.6

0.0

 


By: Al Greenwood
+1 713 525 2645



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