US Specialty Chemicals Rise for 3rd Month in a Row, ACC says

The American Chemistry Council (ACC) reported that U.S. specialty chemicals market volumes started the second quarter on a strong note, rising 0.6 percent in April and following similar gains in March and February. Volumes have generally been moving up since last May. All changes in the data are reported on a three-month moving average (3MMA) basis. Of the twenty-eight specialty chemical segments we monitor, twenty expanded in April and eight experienced decline. During April, large gains (1.0 percent and over) occurred in catalysts, corrosion inhibitors, lubricant additives, and oilfield chemicals.

The overall specialty chemicals volume index was up 3.0 percent on a year-over-year (Y/Y) 3MMA basis. The index stood at 107.3 percent of its average 2012 levels. This is equivalent to 7.39 billion pounds (3.35 million metric tons). The down-turn in the oil and gas sector had affected headline volumes and along with weakness in other segments resulted in negative year-earlier comparisons from second quarter 2015 through second quarter 2016. Led by the recovery in the oil and gas sector, headline volumes are now positive. On a Y/Y basis, there were gains among 20 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.

Specialty chemicals differ from commodity chemicals. They may only have one or two uses, while commodities may have multiple or different applications for each chemical. Commodity chemicals make up most of the production volume in the global marketplace, while specialty chemicals make up most of the diversity in commerce at any given time, and are relatively high value with greater market growth rates.