Geopolitical issues like the Russia-Ukraine war, prolonged COVID lockdowns in China, sky-high inflation, and the Fed’s aggressive money-tightening policies took a toll on the US Chemical industry in 2022. However, with the inflation cooling and the Fed slowing its pace of interest rate hikes, the industry might be able to perform well in the coming times.
The U.S. chemical industry remains advantaged due to abundant domestic production of natural gas and natural gas liquids. Also, automotive manufacturing could be a bright spot for the industry. According to S&P Global Mobility, global new light vehicle sales will reach nearly 83.6 million units in 2023, a 5.6% increase year-over-year. Automotive has been a significant end industry for chemicals.
