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The U.S. chemical industry is on the cusp of a strong 2018, while its counterparts in Europe, including Germany,are expecting a good but not spectacular year. The American Chemistry Council (ACC) trade association is calling for an increase in U.S. chemical production of 3.7% in 2018 after an estimated 0.8% increase this year, when Hurricane Harvey hampered production along the Gulf Coast. “Manufacturing has turned a corner, business investment is on the rise, and domestic oil and gas production is on the rebound,” notes Kevin Swift, ACC’s chief economist. Cheap and abundant feedstocks and energy give U.S. chemical makers an edge, he points out. The European Chemical Industry Council and Germany’s Chemical Industry Association each predict a 2.0% rise in chemical output in the regions they represent. The groups say they are enjoying robust demand from the European Union as well as Asia and Russia. However, both note that high energy and feedstock prices as well as carbon costs under the EU Emissions Trading System will put them at a disadvantage to North America and China in 2018.
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