Recent Price Trends in the Chemicals Industry
An overview of Chemical Manufacturing price indexes
U.S. Import and Export Price Indexes contain data on changes in the prices of nonmilitary goods and services traded between the United States and the world. The U.S. Bureau of Labor Statistics produces these indexes, which are Principal Federal Economic Indicators.
Q: How have import chemical prices trended over the 2020–2022 period? (See chart 1)
- The import price index for chemical manufacturing products advanced 11.5 percent from December 2019 to December 2022. The price index increased 0.3 percent in 2020 before rising 12.8 percent in 2021. Import chemical manufacturing prices fell 1.4 percent in 2022.
- The 12.8-percent rise in import prices for chemical manufacturing in 2021 was the largest calendar-year increase since 12-month changes for the index were first published in December 2006.
- Higher prices for petroleum, a primary input for many chemical products, drove the import price advance for chemical manufacturing in 2021. However, despite rising petroleum prices in 2022, chemical prices fell by 1.4 percent.
Q: How did import chemical prices compare with other economic data? (See chart 1)
- Import prices for chemical manufacturing recorded similar trends to the corresponding export and domestic indexes in 2020. Import chemical manufacturing prices rose in 2021, but at a lower rate than both export and domestic prices. In 2022, import prices fell and domestic prices advanced.
- The producer price index for chemical manufacturing increased 23.8 percent over the 3-year period from December 2019 to December 2022. The index rose 1.5 percent in 2020 before advancing 15.5 percent in 2021. Chemical manufacturing producer prices rose 5.6 percent in 2022.
- Producer prices for chemical manufacturing rose more sharply than import and export prices for chemicals from December 2019 to December 2022.
Q: How have export chemical prices trended over the 2020–2022 period? (See chart 1)
- Export chemical manufacturing prices advanced 14.9 percent over the 3-year period ended December 2022. Prices rose 2.6 percent in 2020, increased 16.7 percent in 2021, and declined 4.1 percent in 2022.
- The 2021 increase was the largest calendar-year rise since 12-month changes for export chemical manufacturing prices were first published in December 2006.
Q: What are the top six exporting states and territories for chemical manufacturing? (See chart 2)
- In 2022, the total trade value of exported chemical manufacturing products was $288.0 billion, a 13.4-percent increase from 2021. The top 6 exporting states made up close to 50 percent of this value.
- Texas ranked first in the United States in 2022 for export chemical manufacturing with $63.7 billion in export trade value. That accounted for 22.1 percent of total U.S. chemical manufacturing exports.
- California ranked second with $17.6 billion in trade dollar value, accounting for 6.1 percent of total U.S. chemical manufacturing exports. Puerto Rico ranked third with $17.1 billion in trade, which represented 5.9 percent of total chemical manufacturing exports.
Q: How are import and export price indexes useful to you?
Import and export price indexes can provide a new perspective for your trade analyses. Although many sources report domestic market prices and trade volume, IPP data are unique in measuring import and export price movement.
For example, if you are involved in the chemical industry and are considering conducting business overseas, IPP chemical manufacturing indexes can supplement your industry research by providing long-term import and export price trends.
Q: How are import and export price indexes used?
Import and export price indexes are used for a variety of purposes:
- In the conversion of U.S. trade figures from current dollars to constant dollars in U.S. trade statistics including the Bureau of Economic Analysis’ Quarterly Gross Domestic Product and the Census Bureau’s monthly U.S. trade statistics.
- To assess the impact of international trade on domestic inflation and the competitive position of the United States.
- As a tool for analyzing fiscal and monetary policy, measuring the impact of exchange rates, and escalating trade contracts.
- To identify industry-specific and global price trends.
Last Modified Date: July 12, 2023