US chemical production increased by 1.3 per cent year on year (YoY) in November, with gains in specialty chemicals like synthetic rubber and coatings. Capacity utilisation improved slightly to 77.7 per cent. European chemical output fell 0.3 per cent YoY in the same period due to high energy costs and declining consumer demand.
European chemical industry faces continued degrowth due to energy price volatility and declining consumer demand, contrasting with a 1.3 per cent year-on-year increase in US chemical production in November.
Global chemical freight rates saw a 15 per cent increase.
Meanwhile, Nylon-66 production surged by 4 per cent due to robust automotive demand in China and the US.
European gas prices rose to €45.9 (~$48.27) per MWh in November, the highest in 2024, due to continued fears of Russian supply disruptions. US natural gas prices remained relatively low at $3/MMBtu due to high inventories. This helped maintain the cost advantage for US chemical producers.
Chemical freight rates increased by 15 per cent YoY in November due to global trade disruptions, including Panama Canal congestion. However, some improvement is expected as the canal authority eases restrictions.
Nylon-66 global production increased by 4 per cent YoY in the third quarter of 2024, driven by rising automotive demand in China and the US. Chinese car exports grew by 2.3 per cent YoY to 29.7 million units.
Fibre2Fashion News Desk (AJ)
