Lan also noted that global chemical output stalled in July, with slight gains in Asia and South America only partially offsetting declines elsewhere.
According to ACC data, U.S. production weakened across most regions and segments. Plastic resins recorded a 1.8% increase, while bulk petrochemicals rose 0.5%. However, other product categories experienced declines, weighing on overall performance. The Gulf Coast was the only U.S. region to show stability, supported by strong petrochemical and resin output.
China’s chemical industry maintained steady growth, with output rising 0.3% for the second consecutive month. This expansion was driven by robust export demand, although part of the increase may be linked to stockpiling ahead of national events that could temporarily affect production.
Europe’s chemical sector contracted by 0.9%, reflecting challenges from elevated energy costs and uncertainties in trade conditions. The decline has added pressure on companies across the region, many of which are undergoing restructuring to adapt to higher operating expenses and reduced demand.
In South America, growth slowed to 0.4% in July from 1.6% in June. Argentina was the only major economy in the region to post a decline, while other markets registered slower but still positive momentum.
The ACC data highlight uneven global trends in chemical production. While Asia continues to provide modest support through exports, weakness in the U.S. and Europe is weighing on overall performance. South America is contributing incremental gains, though at a reduced pace compared with earlier in the year.
With ongoing trade uncertainty, fluctuating energy prices, and slowing industrial activity in key economies, the outlook for global chemical production remains cautious. Companies are adjusting strategies to manage reduced margins and are monitoring demand conditions closely to plan for the months ahead.
