WILLIAM STORCK

The U.S. chemical industry exported $79.9 billion worth of products last year, according to data from the Commerce Department, an increase of 13.3% over the prior year. That figure--a record high for the industry--was reached despite a strong dollar that made international competition difficult for the U.S. chemical industry.

But the strong dollar, especially against the euro, also made the U.S. an attractive market for foreign chemical producers. Imports of chemicals into the U.S. rose 18.4% last year to $73.6 billion.

The result of the rapidly rising imports was a further shrinking of the chemical trade surplus by 24.6% to $6.29 billion. Since hitting a record of $20.5 billion in 1997, the surplus has plummeted some 69%. In fact, 2000 marks the lowest level for the surplus, long a source of pride for the chemical industry, since 1978.

Within the broad chemicals and related products category, five subcategories--dyes, cosmetics, medicinal chemicals, plastics, and "other"--saw trade balances improve, while three--fertilizers and inorganic and organic chemicals--saw balances fall. In fact, organic chemicals, its trade deficit deepening by 62%, accounted for more than the total decline for all chemicals. Excluding organic chemicals, the trade surplus for the chemical category was up 13%.

Total chemical trade, however, is going to get slightly worse before it gets better, according to economists at the American Chemistry Council. They predict that exports will rise 6.3% this year while imports will gain another 7.0%, pushing the surplus about 2% lower. Next year, the surplus will begin to recover, they say, rising almost 23% as exports increase 7.5% and imports rise a lesser 6.3%.--

[Previous Story] [Next Story]

Top

Chemical & Engineering News
Copyright © 2001 American Chemical Society