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US Plants Soar in Production of Coatings, Adhesives, Dyes and Pigments in Late 2022
US Plants Soar in Production of Coatings, Adhesives, Dyes and Pigments in Late 2022

US Plants Soar in Production of Coatings, Adhesives, Dyes and Pigments in Late 2022

  • 09-Jan-2023 3:54 PM
  • Journalist: Bob Duffler

US: The Main Guild of Chemical Producers Report Mixed Results for U.S. Chemical Production – Gains in Coatings, Adhesives and Industrial Gases are Offset by Lower Output of Plastic Resins, Rubber, Fibers, and Pesticides. The latest three-month-moving-average report from the main guild of chemical producers paints an accurate picture of the state of U.S. chemical production with gains in coatings, adhesives, industrial gases, synthetic dyes, and pigments outweighed by lower output of plastic resins, organic chemicals, synthetic rubber, fibers, fertilizers, and pesticides. According to the guild’s spokesperson, since nearly all manufactured goods are produced with chemistry in some form or another, chemical demand is a strong indicator for manufacturing activity – and this rings true as the U.S. Chemical Production Regional Index (U.S. CPRI) registered a decline of 0.4% in November after drops of 0.4% in September and 0.3% in October.

Chemical Output Falls Across U.S. as Cox Enterprises Invests $150 Million in Nexus to Increase Recycling of Plastics. The American Chemistry Council's (ACC) report reveals decreased production of chemicals in all U.S. regions compared to a month ago, with Gulf Coast bearing the brunt of this downturn due to its array of industrial chemical and synthetic materials production capacity. The fall reflect poor output from several end-use manufacturing industries, weak export markets and an insufficient recycling rate for plastics in the U.S., which is lower than many other regions, like Europe for instance. In light of this, Cox Enterprises will be investing $150 million in Nexus to build additional capacity to capture used plastics - especially hard-to-recycle films - from landfills and meet the outsized demand for recycled-plastic products; they plan on having facilities capable of processing over 250 million pounds annually through their proprietary end-to-end solution which has already diverted millions of pounds away from landfills.

Canada is taking steps to reduce plastic waste with new bans on single-use plastics, which encourage recycling and prevent contamination of landfills, rivers, and oceans. The plastic resin industry is championing a circular economy focused on sustainability. Cox, with 125 years of history and $21 billion in yearly sales, is in line with the effort. The US Census Bureau and Department of Housing and Urban Development reported that in November 2022, sales of new single-family homes hit a seasonally adjusted annual rate of 640,000 — 5.8% higher than the October rate but 15.3% lower than the 2021 estimate of 756,000 homes. There was an 8.6-month supply at the current sales rate according to estimates — 461,000 units were available on sale by month's end. However, existing home sales saw the tenth consecutive month decline in November per the National Association of REALTORS' report on Dec 21st. Sales were down 7.7% compared to October at a seasonally adjusted annual rate of 4.1 million — 35% lower than 6.33 million sold in November 2021 — indicating that housing affordability had been reduced due to rising mortgage rates combined with a scarcity of inventory near historic lows. NAR Chief Economist Lawrence Yun attributed inertia to "the COVID-19 economic lockdowns".

At the end of November, total housing inventory registered at 1.14 million units, 6.6% lower than October but 2.7% higher than one year ago. This represented a 3.3-month supply at the current sales pace, equal to October but up from 2.1 months in Nov 2021. Housing and construction are key drivers of demand for petrochemicals such as PVC tubing, fixtures, insulation, and coatings — products with retardants, pesticides, or cleaning — across automotive and packaging industries alike. As mandated by regulations stipulating rotation of independent auditors, Braskem is also Latin America's biggest producer of polypropylene in North America. This appears to contrast Petroperu's practice - a Peruvian state oil company - where the former President Humberto Campodonico achieved his key goal during his April-October 2022 presidency; getting the auditing company which had worked on Petroperu´s auditing over several years to stay following the 2021 elections despite objection after rotated authorities were appointed in Petroperu shortly after.

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