We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Global Chemical Output Ticks Up in February on Broad Gains
Read MoreHide Full Article
Global chemical production continues its gaining streak on a monthly basis with February seeing a rise in output on gains across all regions barring Latin America, according to the latest monthly report from the American Chemistry Council ("ACC").
The Washington, DC-based chemical industry trade group said that the Global Chemical Production Regional Index ("CPRI") rose 0.3% in February on a monthly comparison basis. This follows a 0.5% gain a month ago and a 0.4% rise in December. The Global CPRI, which is measured using a three-month moving average, measures chemical production volumes for 33 major nations, sub-regions and regions. It is comparable to the Federal Reserve Board (“FRB”) production indices.
Gains in production were witnessed across North America (up 0.2%), Western Europe (up 0.2%), Central & Eastern Europe (up 0.2%), Asia-Pacific (up 0.4%) and Africa & Middle East (up 0.1%) in the reported month.
The results were mixed on a product basis in February. On a year-over-year comparison basis, strongest growth was witnessed in coatings (up 4.4%). Plastic resins saw a 3.8% rise while inorganic chemicals racked up a 3.4% gain. Production for agricultural chemicals slipped 1% while consumer products edged down 0.4%.
The ACC also note that the Global CPRI went up 1.9% year over year on a three-month moving average basis. Capacity utilization for the global chemical industry moved up 0.1 percentage points to 79.4% in February.
The U.S. chemical industry has also got off to a positive start in 2017 with output rising in both January and February. The ACC recently said that the U.S. CPRI increased 0.2% in February following a 0.5% gain in January. Gains were witnessed in all seven chemical producing regions in February.
The chemical industry is finally back on track after bearing the brunt of the global economic crisis. While the industry remains buffeted by several challenges, its upturn is expected to continue this year on sustained healthy momentum in the automotive space and an upswing in the housing market.
In particular, the U.S. chemical industry is set for solid growth this year and the next notwithstanding a number of headwinds including a strong dollar, soft export markets and a low oil price environment.
The outlook for the American chemical industry paints an encouraging picture. The ACC sees national chemical production to rise 3.6% in 2017, further accelerating to a 4.8% growth in 2018. The trade group also expects basic chemicals production to expand 4.2% in 2017 on the back of advances in manufacturing and exports.
Moreover, the shale gas bounty is expected to drive investment on plants and equipment in the U.S. Chemical makers including Dow Chemical (DOW - Free Report) , BASF (BASFY - Free Report) , LyondellBasell (LYB - Free Report) , Eastman Chemical (EMN - Free Report) and Westlake Chemical (WLK - Free Report) are ramping up investment on shale gas-linked projects to take advantage of ample natural gas supplies.
Per the ACC, over 275 new chemical projects have been announced by chemical makers (worth more than $170 billion) since 2010, nearly half of which already complete or under construction. Such investments are expected to boost capacity and export over the next several years.
The Zacks categorized Chemicals-Diversified industry has also outperformed the broader market over the past year. The industry has gained around 20.5% over this period, higher than S&P 500’s corresponding return of 15%.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Global Chemical Output Ticks Up in February on Broad Gains
Global chemical production continues its gaining streak on a monthly basis with February seeing a rise in output on gains across all regions barring Latin America, according to the latest monthly report from the American Chemistry Council ("ACC").
The Washington, DC-based chemical industry trade group said that the Global Chemical Production Regional Index ("CPRI") rose 0.3% in February on a monthly comparison basis. This follows a 0.5% gain a month ago and a 0.4% rise in December. The Global CPRI, which is measured using a three-month moving average, measures chemical production volumes for 33 major nations, sub-regions and regions. It is comparable to the Federal Reserve Board (“FRB”) production indices.
Gains in production were witnessed across North America (up 0.2%), Western Europe (up 0.2%), Central & Eastern Europe (up 0.2%), Asia-Pacific (up 0.4%) and Africa & Middle East (up 0.1%) in the reported month.
The results were mixed on a product basis in February. On a year-over-year comparison basis, strongest growth was witnessed in coatings (up 4.4%). Plastic resins saw a 3.8% rise while inorganic chemicals racked up a 3.4% gain. Production for agricultural chemicals slipped 1% while consumer products edged down 0.4%.
The ACC also note that the Global CPRI went up 1.9% year over year on a three-month moving average basis. Capacity utilization for the global chemical industry moved up 0.1 percentage points to 79.4% in February.
The U.S. chemical industry has also got off to a positive start in 2017 with output rising in both January and February. The ACC recently said that the U.S. CPRI increased 0.2% in February following a 0.5% gain in January. Gains were witnessed in all seven chemical producing regions in February.
The chemical industry is finally back on track after bearing the brunt of the global economic crisis. While the industry remains buffeted by several challenges, its upturn is expected to continue this year on sustained healthy momentum in the automotive space and an upswing in the housing market.
In particular, the U.S. chemical industry is set for solid growth this year and the next notwithstanding a number of headwinds including a strong dollar, soft export markets and a low oil price environment.
The outlook for the American chemical industry paints an encouraging picture. The ACC sees national chemical production to rise 3.6% in 2017, further accelerating to a 4.8% growth in 2018. The trade group also expects basic chemicals production to expand 4.2% in 2017 on the back of advances in manufacturing and exports.
Moreover, the shale gas bounty is expected to drive investment on plants and equipment in the U.S. Chemical makers including Dow Chemical (DOW - Free Report) , BASF (BASFY - Free Report) , LyondellBasell (LYB - Free Report) , Eastman Chemical (EMN - Free Report) and Westlake Chemical (WLK - Free Report) are ramping up investment on shale gas-linked projects to take advantage of ample natural gas supplies.
Per the ACC, over 275 new chemical projects have been announced by chemical makers (worth more than $170 billion) since 2010, nearly half of which already complete or under construction. Such investments are expected to boost capacity and export over the next several years.
The Zacks categorized Chemicals-Diversified industry has also outperformed the broader market over the past year. The industry has gained around 20.5% over this period, higher than S&P 500’s corresponding return of 15%.
Now See Our Private Investment Ideas
While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>