BY NEIL EISBERG
US specialty and fine chemical volumes fell back slightly by 0.5% to 3.47mt in January 2025, compared with December 2024, according to figures produced by consultancy Swift Economics. This figure was still 1.3% higher, compared with January 2024; and still above re-Covid levels. The fallback is believed to be the result of ‘softened activity’ due to adverse winter weather and follows a 0.7% gain in December and flat activity in November 2024.
Growth was not consistent across all segments of the sector, with only 11 expanding out of the 30 monitored, down from 24 in December and 15 in November 2024. The 2025 January figure compares with nine segments expanding in January 2024. In January 2025, however, only two segments, active pharmaceutical ingredients (APIs) and water management chemicals saw a gain of 1.0% or more, although there were gains in cosmetic additives, electronic chemicals, industrial and Institutional cleaners, plasticisers and textile specialties.
API demand rose to over 334,200t in January 2025. This reflects several gains over recent years due to several new projects and re-shoring of supply chains, as well as higher government and corporate funding. Demand for water management chemicals rose to almost 67,500t.
Demand for agrochemical intermediates stood at 38,650t, also aided by new projects in recent years, higher, but varying farm incomes, and higher crop acreages for most crops. Demand is also being driven by rising population, food security, advances such as precision farming and increasing demand for bio-based agrochemical intermediates. This is despite the farming economy being in recession, which is likely to affect demand in the next couple of years.
Biocide volumes rose to over 38,600t in January 2025, with improvements in products for wood preservation and cosmetics and personal care products. Biocides were also impacted by a fall in coatings demand, due to softer demand for architectural and special purpose coatings.
Electronic chemical demand saw a gain in January 2025 with volumes exceeding 23,700t, due to higher requirements for semiconductor packaging, processing chemicals and chemicals and materials for printed circuit boards. Boosted by the US Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act enacted by the Biden Administration in 2022, reshoring is also expected to be factor in this segment for the remainder of the decade.
Flavours and fragrances demand grew to over 40,700t, due to good demand from beverages and fragrances and aroma chemicals. Demand for lubricant additives fell back to around 69,000t as OEM automotives demand dropped although industrial applications remained stable.
Production of paints and coatings dropped during January, resulting in lower demand for paint additives, such as thickeners, wetting and antifoam agents, which fell to 19,000t. With a slight improvement in paper production, demand for pigments, sizing agents, defoamers and binders, rose to over 80,000t.
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