Monthly Industry Briefings > Monthly Industry Forecasts > Chemicals

Output in the US ticked up in February, reversing some of the weather-related dip in January. Output in both pharmaceuticals and non-pharmaceuticals expanded at a similar pace. In Japan, the trend was divergent the weak yen and firm domestic industrial output prospects are driving a pickup in non-pharmaceuticals which typically tracks the industrial cycle. Growth in pharmaceuticals was much more muted. Similarly, in Europe, where a breakdown is available, pharamceuticals appears to be the weaker sub-sector. Meanwhlie, the recent crisis in Ukraine has pushed up world fertilizer prices; Ukraine is a key producer of ammonia, an input for fertilizers, and production of ammonia in turn requies large quantities of gas. A further escalation in tensions could see further price rises.