According to C&EN’s latest survey of the top 50 US chemical companies

Press Release : September 11, 2020
According to C&EN’s latest survey of the top 50 US chemical companies

We didn’t understand it at that time, but 2019 goes lower-for that chemical industry and beyond-as are blissfully untarnished through the novel coronavirus. Once the economy begins to grow again after shutdowns are lifted, we’ll use 2019 as a yardstick to gauge whether or not this has retrieved fully.

 

Based on C&EN’s latest survey from the top 50 US chemical companies, companies were already showing indications of slowing prior to the pandemic. The 50 companies combined chemical sales for 2019-the entire year that forms the foundation for the survey-declined 9.8% from 2018 to $280.2 billion. This can be a sharp contrast towards the 17.9% sales increase the largest 50 firms with each other published in 2018.

 

Based on the American Chemistry Council (ACC), a trade group, chemical industry growth was weak in 2019. US chemical production elevated by only .6% in the past year. Global growth only agreed to be slightly better at 1.2%.

 

Prices could explain the decline. Dow Jones, which heads C&EN’s ranking and saw a 13.4% loss of chemical sales this past year, reported that prices because of its products declined by 11.%.

 

Meanwhile, oil prices elevated all year round, beginning at approximately $45 per barrel and finishing just over $60. Oil and gas are major cost inputs for that chemical industry. Growing energy prices plus declining chemical prices will likely equal shrinking profits.

 

And based on C&EN’s data, profits did indeed decline. The 44 chemical companies one of the top 50 that openly report profits published combined operating earnings of $28.6 billion for that year, a loss of 26.3%. Last year’s survey found a 19.5% rise in profits.

Notes to editors

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