ACC Report Shows: US Chemical Industry Growth Slows Slowdown

According to the report of the American Chemicals Commission (ACC) mid-year, demand growth of the American chemical industry began to slow in the first half of 2005. The main reasons for this slowdown are threefold: high energy prices, rising inventory, and global industries are at the end of the boom cycle.
The ACC pointed out that the world’s continuously rising oil prices and uncertain natural gas prices in the first half of this year have slowed the growth rate of US chemical industry. In addition, the growth of chemical stocks is also one of the reasons for the slowdown in the growth rate of chemical industry in the United States.
However, according to ACC, in the context of the overall slowdown in the industry, some areas have maintained strong growth momentum, such as electronic products, including computers, semiconductors, and electronic communications. In the first half of this year, the output increased by 18% over the same period of last year. In the long run, the growth rate in this field is expected to reach an average of 8% per year. The plastics industry, compared to the growth rate is much slower, ACC predicts that the growth rate of the US plastics industry in the second half of this year and next year is only 1.5% per year. In the long run, the growth rate of the industry is only for years. Both levels are 2%.
According to ACC, the global chemical market is entering the final stage of the current cycle of the economy. The current cycle of economic prosperity peaked in January 2005, when global industries rose 5.8% in January 2004. At present, the growth rate of the global industry compared with the same period of last year has already dropped to about 3%, with the exception of the Chinese market. According to the ACC forecast, China's chemical industry is expected to grow by 12% this year.

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