The American Chemistry Council (ACC; Washington, D.C.; www.americanchemistry.com) reported that U.S. specialty chemicals market volumes eased 0.2 percent in March, after flat activity in February and a 0.3 percent gain in January. All changes in the data are reported on a three-month moving average (3MMA) basis.
Of the 28 specialty chemical segments ACC monitors, only eight expanded in March, down from 12 in February and 14 in January. Nineteen markets experienced decline in March and one was flat. During March, large market volume gains (1.0 percent and over) occurred only in construction chemicals and textile specialties.
During March, the overall specialty chemicals volume index was up 3.8 percent on a year-over-year (Y/Y) 3MMA basis. Year-earlier comparisons have been easing since the third quarter 2018, ACC says. The index stood at 115.3 percent of its average 2012 levels in January. This is equivalent to 7.85 billion pounds (3.56 million metric tons). On a Y/Y basis, there were gains in 20 market and functional specialty chemical segments, while volumes were down in eight segments, ACC notes.
Performance chemistry reflects trends in manufacturing. For the first quarter as a whole, specialty chemical market volumes were essentially flat, ACC says.
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.