It’s too early to predict both the timetable in which industries will recover, and the speed at which recoveries will take place. Knowde continues to believe that chemicals will play an important role. A major part of this will be the ability of chemical companies to ramp up to demands as they emerge.
Chemicals players count the cost of collapsing demand in key markets
As the market impact of the coronavirus outbreak continues to ripple through the financial system, chemicals players are starting to reckon with the impact on end markets. Chemicals firms are currently digesting the impact of government-mandated shutdowns of non-essential businesses to encourage social quarantine measures, the closing of borders and the grounding of flights, as well as corporate decisions to shutter sites amid cratering demand. The impact of some of the closures and demand drops are likely to take weeks to filter back up through supply chains to chemicals firms, but some signs are already starting to emerge of which end markets are likely to be the most disrupted. The situation is volatile and fast-moving.