The most recent report from the American Chemistry Council (ACC) reveals that U.S. chemical production rose for the second month in a row during January, marking a positive trend at the start of the year. While the Southeast and Gulf Coast regions continue to feel the lingering effects of last year’s hurricanes, other areas saw output surpassing the same period in 2022. Specifically, the Northeast experienced a 2.3% increase in chemical production compared to January 2022, while the Gulf Coast faced a 4.6% decline.
Standard & Poor’s has highlighted that the North American chemical sector remains optimistic for 2023. This outlook is supported by moderate economic growth, rising product prices that help offset high energy costs, and limited new capacity additions. These factors are expected to sustain demand and support industry stability.
Dow Chemical achieved record-breaking sales and profits in 2022, with S&P crediting the company’s success to its global expansion, diversified product portfolio, and effective supply-demand management. In contrast, DuPont had a weaker performance, primarily due to sharply rising raw material costs, unexpected shutdowns at its titanium dioxide facilities, and declining demand for crop protection products.
According to S&P, the average credit rating for U.S. chemical companies in the fourth quarter of 2022 was “BB+.†Despite rising input costs, most firms managed to maintain profitability, with 2022 results outperforming the previous year.
Analysts at Deutsche Bank Securities believe that the North American chemical industry will remain favorable through 2007, driven by high equipment utilization and limited new capacity. However, they warn that from 2008 onward, increased production in the Middle East could lead to oversupply, putting pressure on U.S. producers and potentially triggering a downward trend in the global market.
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