Chemical Engineering January 2022 - 4

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CPI outlook is adjusting and strong
F
ollowing the major disruptions in 2020 due to the pandemic,
U.S. chemical production has grown in 2021 and is poised for
further gains in 2022, according to the American Chemistry
Council's Year-End 2021 Chemical Industry Situation and Outlook.
U.S. chemistry is expected to grow by over 4% in 2022. Martha
Moore, who is ACC's chief economist and author of the report, says
that " While risks for the global economy remain, the U.S. chemical
industry is in a strong position going into 2022 ... American chemistry
is poised to accelerate as strong consumer demand and restocking
drive growth. "
Strong demands tempered by supply and weather
After widespread lockdowns and hefty economic stimulus efforts during
the pandemic, consumer demand for durable goods surged in
2021. Two large markets for chemical products, vehicles and housing,
both saw expanding demand this past year.
And while demand was strong, vehicle production could not keep
up because of supply constraints, specifically from semiconductor
manufacture. In fact, supply-chain disruptions have affected just
about every segment of production within the chemical process industries
(CPI). In addition to supply-chain bottlenecks, significant
weather events - in the U.S. most notably, the unusual freeze and a
hurricane in the Gulf Coast - also contributed to lower inventories of
basic chemicals. Production being held back by supply-chain disruptions,
however, is expected to rebound as those issues are resolved
and consumer demand remains high.
CPI trends
As the CPI continue to adjust to meet demands while weathering
numerous disruptions, they are also keenly addressing longterm challenges
and adjusting their focus accordingly. As mentioned in this column
last month, ambitious climate-change targets are fueling work
in areas such as carbon capture and storage, and " green " hydrogen
production. Overall, sustainability and process efficiency goals
are driving attention to recycling (particularly of plastics), bio-based
chemistry and ways to increase efficiency, such as catalyst developments
- see for example our Cover Story on the Kirkpatrick Chemical
Engineering Achievement Award.
As mentioned, the automobile market is a major user of CPI products.
Vehicle manufacturers' movement away from petroleum-derived
fuels and toward electric cars or possibly hydrogen as a fuel source,
affects the products to be provided to them by the CPI. Examples
include developments in battery chemistry and polymer chemistry.*
And, corporations are preparing for changing needs via business
ventures. Last month, BASF (www.basf.com) announced a new
standalone business called BASF Automotive Catalysts and Recycling,
which is being formed specifically to focus on the changes
expected in the automobile market. And recently,
TotalEnergies (totalenergies.com) partnered with
Plastic Omnium (www.plasticomnium.com) to design
and develop new plastic materials, made from
recycled polypropylene, for the automobile industry.
We look forward to continuing to cover these
trends and much more throughout the year, and we
wish our readers all the best for this new year. ■
Dorothy Lozowski, Editorial Director
* see Electric Vehicles Drive Performance Polymers, Chem. Eng. August
2021, pp. 13-16
CHEMICAL ENGINEERING WWW.CHEMENGONLINE.COM
JANUARY 2022
https://www.basf.com/ https://totalenergies.com/ https://www.plasticomnium.com/ https://www.accessintel.com https://www.chemengonline.com/electric-vehicles-drive-performance-polymers/ http://WWW.CHEMENGONLINE.COM
Chemical Engineering January 2022

Table of Contents for the Digital Edition of Chemical Engineering January 2022
