PODCAST: Chemicals face deeper disruption as coronavirus lockdowns spread

BARCELONA (ICIS)–As coronavirus lockdowns continue to spread around the world, the chemical industry globally faces more disruption to demand and supply chains, with many prices and margins already collapsing.

In Europe there have been record-breaking drops in benzene prices as demand collapsed last week. Polymer markets in Europe are holding up better as downstream customers aim to produce as much as possible ahead of possible disruption in April.

In Asia the problem has moved on from China not being able to sell to the world to the world not wanting Chinese goods. The polyester chain will be particularly badly hit as western consumers stop buying clothes.

First quarter China GDP collapsed by -10% to -20% with a very slow uptick expected into the second half of the year. Global logistics face severe disruption with containers being displaced from cargoes which are waiting to be transported.  Port restrictions are adding to the problem.

Listen to this podcast interview with ICIS senior editors Linda Naylor and Helena Strathearn plus International eChem chairman Paul Hodges and ICIS senior consultant, Asia, John Richardson.

ICIS is organising a series of free webinars and regular industry updates to help bring the industry community together in this time of crisis. Register here. 

Read John Richardson’s Asia Chemical Connections blog.

Read Paul Hodges ICIS Chemicals and the Economy blog.

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Listen to this podcast interview by Will Beacham