The Urethane Blog
July 16, 2020
US Retail Sales Soar In June Led By Clothing Demand
by Tyler Durden Thu, 07/16/2020 – 08:39
Following a disappointing contraction in Chinese retail sales overnight, US Retail Sales growth in June was expected to slow from its massive rebound spike in May and it did but still notably beat expectations (rising 7.5% MoM vs +5.0% MoM exp).
Source: Bloomberg
Everything was higher in retail sales with a 105% MoM spike in Clothing, except:
- Building materials and garden supplies -0.3%
- Food and beverage stores -1.2%
- Nonstore retailers -2.4%
This is the biggest drop in non-store retail sales (online) since Dec 2018’s collapse…
The “V” in Retail Sales is almost complete…
Source: Bloomberg
On a YoY basis, both the headline and GDP-driver Control Group are back into positive territory…
Source: Bloomberg
https://www.zerohedge.com/personal-finance/us-retail-sales-soar-june-led-clothing-demand
July 15, 2020
US Industrial Output Surges by Most Since 1959 on Reopening
A worker welds a lawnmower frame. (Luke Sharrett/Bloomberg News)
U.S. industrial production in June posted the largest monthly gain since 1959, indicating manufacturing is stirring to life after coronavirus-related shutdowns.
Total output at factories, mines and utilities increased 5.4% from the prior month after climbing 1.4% in May, Federal Reserve data showed July 15. The median projection in a Bloomberg survey of economists called for a 4.3% advance. Factory output jumped 7.2%, the biggest gain since 1946.
The outsize rebound in production still leaves the Fed’s index of industrial output 10.9% below pre-pandemic levels and the capacity utilization rate shows plenty of slack as demand builds only gradually. What’s more, sales may be tempered in coming months as reopenings have entered a more uncertain phase, with states like California imposing renewed lockdown measures.
Total production was boosted by a robust upturn in “manufacturing output as producers, particularly in the auto sector, reopened factories to catch up with the surprisingly strong initial rebound in consumption,” Michael Pearce, senior U.S. economist at Capital Economics, said in a note. “With high-frequency indicators suggesting the latter is now losing pace, future gains in production look set to be more muted too.”
In the second quarter, industrial production fell an annualized 42.6%, the biggest setback in the post World War II era.
Capacity utilization, which measures the amount of a plant in use, increased to 68.6% from a revised 65.1% in May; it was 76.8% in February. Extra capacity can weigh on corporate profits because business capital is underutilized, and it also signals a sluggish capital spending outlook.
The increase in factory output was led largely by vehicle and parts output, which surged 105%. Excluding auto production, factory output rose 3.9% as all major industries registered gains for the month.
The Fed’s report showed utility output increased 4.2%, while mining dropped 2.9%, the fifth straight monthly decrease. Oil and gas well drilling declined 18% after a 36.9% slide a month earlier. Drilling is down a whopping 70% from a year earlier after a slump in oil prices several months ago prompted cutbacks in exploration.
https://www.ttnews.com/articles/us-industrial-output-surges-most-1959-reopening
July 15, 2020
US Industrial Output Surges by Most Since 1959 on Reopening
A worker welds a lawnmower frame. (Luke Sharrett/Bloomberg News)
U.S. industrial production in June posted the largest monthly gain since 1959, indicating manufacturing is stirring to life after coronavirus-related shutdowns.
Total output at factories, mines and utilities increased 5.4% from the prior month after climbing 1.4% in May, Federal Reserve data showed July 15. The median projection in a Bloomberg survey of economists called for a 4.3% advance. Factory output jumped 7.2%, the biggest gain since 1946.
The outsize rebound in production still leaves the Fed’s index of industrial output 10.9% below pre-pandemic levels and the capacity utilization rate shows plenty of slack as demand builds only gradually. What’s more, sales may be tempered in coming months as reopenings have entered a more uncertain phase, with states like California imposing renewed lockdown measures.
Total production was boosted by a robust upturn in “manufacturing output as producers, particularly in the auto sector, reopened factories to catch up with the surprisingly strong initial rebound in consumption,” Michael Pearce, senior U.S. economist at Capital Economics, said in a note. “With high-frequency indicators suggesting the latter is now losing pace, future gains in production look set to be more muted too.”
In the second quarter, industrial production fell an annualized 42.6%, the biggest setback in the post World War II era.
Capacity utilization, which measures the amount of a plant in use, increased to 68.6% from a revised 65.1% in May; it was 76.8% in February. Extra capacity can weigh on corporate profits because business capital is underutilized, and it also signals a sluggish capital spending outlook.
The increase in factory output was led largely by vehicle and parts output, which surged 105%. Excluding auto production, factory output rose 3.9% as all major industries registered gains for the month.
The Fed’s report showed utility output increased 4.2%, while mining dropped 2.9%, the fifth straight monthly decrease. Oil and gas well drilling declined 18% after a 36.9% slide a month earlier. Drilling is down a whopping 70% from a year earlier after a slump in oil prices several months ago prompted cutbacks in exploration.
https://www.ttnews.com/articles/us-industrial-output-surges-most-1959-reopening
July 15, 2020
Chemours to close First Chemical Pascagoula plant by end of the year
PASCAGOULA, Miss. (WLOX) – Chemours has announced that it will close its First Chemical plant in Pascagoula at the end of this year.
A statement released by Monday by Chemours reads:
The First Chemical site in Pascagoula has been a valuable part of Chemours through its manufacturing of aniline, nitrobenzene and NDPA lube antioxidant. As a result of a business review we determined that aniline business is not core to our future strategy and we have made the difficult decision to exit the business and cease production at the site by the end of this year. We value every employee and the customers they serve, and we will support them through this time of transition.
The First Chemical plant, a Chemours company, was established in 1967 as Mississippi’s first chemical company. The plant is located in the Bayou Cassotte Industrial Park in Jackson County.
The Jackson County Economic Development Foundation said they will work closely with Chemours real estate department to redevelop the property. “They will enthusiastically engage with us in redeveloping that property,” said George Freeland, executive director of the foundation.
He also noted that “they have been an extraordinary industrial partner.”
According to Freeland, 74 employees were affected and each will receive a severance package.
The plant is a leading producer of aniline intermediates and derivatives as well as nitrobenzene. These chemicals are the key ingredients in many everyday items, including pharmaceuticals, automotive parts, tires, dyes, photochemicals, agricultural chemicals, and building materials.
The First Chemical Corporation has four independent operating units in the contiguous facility. The four units include: the Port Facility Unit (Aniline Production), the Nitration #1 Unit, Nitration #2 Unit, and the Hydrogenation Units #1 and #2.
In 2009, the plant was ordered to pay $731,000 in civil penalties to the federal government after an explosion in 2002 that left two people injured.
https://www.wlox.com/2020/07/06/chemours-close-first-chemical-pascagoula-plant/
July 15, 2020
Chemours to close First Chemical Pascagoula plant by end of the year
PASCAGOULA, Miss. (WLOX) – Chemours has announced that it will close its First Chemical plant in Pascagoula at the end of this year.
A statement released by Monday by Chemours reads:
The First Chemical site in Pascagoula has been a valuable part of Chemours through its manufacturing of aniline, nitrobenzene and NDPA lube antioxidant. As a result of a business review we determined that aniline business is not core to our future strategy and we have made the difficult decision to exit the business and cease production at the site by the end of this year. We value every employee and the customers they serve, and we will support them through this time of transition.
The First Chemical plant, a Chemours company, was established in 1967 as Mississippi’s first chemical company. The plant is located in the Bayou Cassotte Industrial Park in Jackson County.
The Jackson County Economic Development Foundation said they will work closely with Chemours real estate department to redevelop the property. “They will enthusiastically engage with us in redeveloping that property,” said George Freeland, executive director of the foundation.
He also noted that “they have been an extraordinary industrial partner.”
According to Freeland, 74 employees were affected and each will receive a severance package.
The plant is a leading producer of aniline intermediates and derivatives as well as nitrobenzene. These chemicals are the key ingredients in many everyday items, including pharmaceuticals, automotive parts, tires, dyes, photochemicals, agricultural chemicals, and building materials.
The First Chemical Corporation has four independent operating units in the contiguous facility. The four units include: the Port Facility Unit (Aniline Production), the Nitration #1 Unit, Nitration #2 Unit, and the Hydrogenation Units #1 and #2.
In 2009, the plant was ordered to pay $731,000 in civil penalties to the federal government after an explosion in 2002 that left two people injured.
https://www.wlox.com/2020/07/06/chemours-close-first-chemical-pascagoula-plant/
Everchem Updates Archive 
Sign Up for Email Updates
