The U.S. Chemical Production Regional Index (U.S. CPRI) eased by 0.1% in June following gains of 0.5% in May and 1.0% in April, according to the American Chemistry Council (ACC).
Chemical output was mixed across regions. The U.S. CPRI is measured as a three-month moving average (3MMA).
On a 3MMA basis, chemical production within segments was mixed in June. There were gains in the production of synthetic rubber, industrial gases, coatings, manufactured fibers, synthetic dyes and pigments, adhesives, other organic chemicals, crop protection chemicals, other specialty chemicals, and fertilizers. These gains were offset by lower production of plastic resins, organic chemicals, and consumer products.
As nearly all manufactured goods are produced using chemistry in some form, manufacturing activity is an important indicator for chemical demand. Manufacturing output eased by 0.1% in June (3MMA). The 3MMA trend in manufacturing production was mixed, with gains in the output of motor vehicles, aerospace, iron and steel, oil and gas extraction, and rubber products.
Compared with June 2021, U.S. chemical production was ahead by 2.5%, a slower rate of growth than last month. Chemical production was higher than a year ago in all regions except the Gulf Coast, which was 0.5% lower.
The U.S. CPRI was developed to track chemical production activity in seven regions of the United States. The U.S. CPRI is based on information from the Federal Reserve, and as such, includes monthly revisions as published by the Federal Reserve. The U.S. CPRI includes the most recent Federal Reserve benchmark revision released on June 28, 2022. To smooth month-to-month fluctuations, the U.S. CPRI is measured using a three-month moving average. The reading in June reflects production activity during April, May, and June.
As per MRC, U.S. crude oil stockpiles edged lower last week but gasoline inventories posted a larger-than-expected build on weakened demand. Crude inventories fell by 446,000 barrels in the week to July 15 to 426.6 MM barrels, compared with expectations in a Reuters poll for a 1.4 MM-barrel rise. Demand figures rebounded from the previous week's sharp fall, and product supplied rose to 21 MMbpd. However, gasoline demand continued to sag, and supply of that product over the last four weeks was 8.7 MMbpd, or about 7.6% lower than the same time a year ago.
mrchub.com