COVID-19 Impact on Pharmaceutical Packaging in Chemicals and Materials Industry

COVID-19 Impact on Anti-Corrosion Lubricant in Chemical and Materials Industry

  • Chemical and Materials
  • Mar 01, 2021

COVID-19 Impact on Anti-Corrosion Lubricant in Chemical and Materials Industry 

INTRODUCTION

Anti-corrosion lubricants are products that are used on the surface to reduce the effect of the corrosion or to protect the part from the effect of corrosion. Corrosion is defined as the destructive alteration of metal by a chemical or electrochemical reaction between the metal and the environment. Corrosion is resulting in change and weakening of the metal’s properties and also the rusted metal cannot be used for longer in any application. Anti-corrosion lubricants have different properties and viscosity indexes according to use in a different application. Anti-corrosion lubricants are more demanded in the industries to reduce the corrosion on surfaces which helps to lower the repair cost of the large machinery.

There are two types of corrosion which are electrochemical corrosion and chemical corrosion. Electrochemical corrosion involves the reaction of ferrous (iron-based) metal or its alloys in a two-step process in the presence of an electrolyte, most typically water or moisture which results in rust on the surface of the metal. For mitigating the rust on the surface rust or rust inhibitors additives are used in the lubricant which helps in blocking the surface of the metal from the effects of water, acids, and air.

Chemical corrosion involves the attack of aggressive chemical species such as acids, bases, and sulfur on the surface which results in the corrosion on the metal surface. Chemical corrosion results from the oxidation of hydrocarbons and sulfur-containing additives or additive by-products, on a metal surface resulting in the formation of ionic metallic or oxidized metallic compounds. Adding corrosion inhibitors to a lubricant will help slow the deterioration process in non-noble metals.

The presences of the anti-corrosion additives in the lubricants are very important as it protects the metal from the outside detritions and helps to increase the life of metal. Lubricants that are used in the industries must be formulated with just the right amount of corrosion inhibitor. If a formulation has too high or too low a percentage of the additive, the inhibitor could become less effective in mitigating corrosion on the metal surface or on equipment. The anti-corrosion benefits come without any sacrifice in overall lubricant performance although anti-corrosion help to increase the viscosity, wear resistance, and oxidation stability and among other characteristics.

IMPACT OF COVID-19 ON EMISSION CONTROL CATALYST MARKET

The demand for lubricants is more in the large industries which are engaged in the production of the finished product from the raw material. Large equipment is used in industries that are made from different metals. The metal surface can react with the chemicals which are used in the production of the finished goods to lower that anti-corrosion additives are used in the lubricant. The pandemic has hit the economy very hard word wide as the lockdown was imposed in all the regions which have made the situation challenging for all sector for growth and also the developing actives will be done in the stager manner.

Several large industries were on lockdown during the COVID-19 due to which the product in the industries has fallen which result in the fall in the demand of the lubricants in the industries. The machines or equipment in the industries are running at 25% of their capacity due to which the demand for the anti-corrosion lubricants in the industries. The COVID-19 has created a challenge for the anti-corrosion lubricant manufacturers for the production of the lubricants as most of the raw material is imported from the other regions.

Manufactures also facing the problem for the production of the anti-corrosion lubricants of different grades and viscosity according to the demand in the market due to which manufactures are not able to generate revenue during the COVID-19. The steel manufacturing industries, power industries and other industries which are engaged in the production of the metal parts have faced the lower demand in the COVID-19 period due to which the demand of the anti-corrosion lubricants have fallen down.

The demand anti-corrosion lubricants have fallen down in the oil and gas and marine application as the demand of the products have fallen down due to which have impacted the demand of the anti-corrosion lubricants market. COVID-19 has influenced the car industry and transportation segment within the all the districts due to which demand of the anti-corrosion coating items have fallen down within the car application.

IMPACT OF COVID-19 ON END-USERS OF ANTI-CORROSION LUBRICANTS

 IMPACT ON INDUSTRIES

During the COVID-19 the lockdown was done in all the countries due to which the generation of the wrapped-up merchandise fell. The productions of the new apparatus and equipment which are utilized within the fabricating have fallen conjointly manufactures are not able to put in more cash within the trade amid the widespread circumstance.

Different anti-corrosion lubricants are used across various industries for the running of large and small machinery such as metals and mining, power, iron and steel, chemicals, cement, construction, railways, oil and gas, general manufacturing among others. In the pandemic situation, considering that most industries and manufacturing sectors have been impacted due to the lockdown in the countries, which affected the demand for anti-corrosion lubricants to a larger extent. Industrial activity in the COVID-19 period has shrunk which has impacted the demand for various types of industrial anti-corrosion lubricants result in lowering of demand which including, metalworking fluid, transmission and compressor oils, agri-spray oils, turbine oils, greases, hydraulic oils, industrial gear oils other industrial lubes among others.

  TABLE 1    IMPACT ON KEY INDUSTRIES BY COVID-19 IN INDIA

Industry

Impact

Power

-25% fall in peak demand

Construction

Complete lockdown

Iron and Steel

-8% fall in 2020

Cement

Fall in 10–20% demand contraction in

Railways

Complete lockdown

From the above table, we can infer that the COVID-19 has impacted several industries and production activities in several regions due to which demand of the machinery and other equipment in the large industries have fallen which have brought about a negative impact on the demand of the anti-corrosion lubricants.

In industries, very large machinery and equipment are used in the production of the goods which requires a large quantity of the anti-corrosion lubricants on the surface which can lower the wear and tear on the machinery and equipment but during the COVID-19 the government or the higher authorities of the different nation have issued the regulation for the lockdown to stop the spread of COVID-19 but this affect the productivity and the demand of the anti-corrosion lubricants. The demand of the anti-corrosion has fallen down by 35%-38% due to lower demand in the various industries.

  FIGURE 1    GROWTH RATES BY INDUSTRY: 2020, SECOND QUARTER (IN PERCENTAGE)

COVId-19 Impact on Anti-Corrosion Lubricant in Chemical and Materials Industry

From the above diagram, we can infer that all the industries have been affected by the COVID-19 situation. The demand for every product in every region have fallen down with the fall in the demand during the pandemic manufacture growth have fallen down. The manufactures in the industries have faced losses due to lockdown and lower demand in the market. As in the second quarter of 2020, every industry growth rates are in negative values as chemical industry growth rate is -10%, Refineries and Petroleum Industry growth rate is -17%, Electrical Equipment Industries growth rate is -18%, Basic Metal Industry growth rate is – 23%, Textile Industry growth rate is -25% and Automotive Industry growth rate is -52%. With the falling growth rate of the industries, the market for emission control catalysts has to face several challenges for growth.

IMPACT ON THE PRICE OF THE ANTI-CORROSION LUBRICANTS

The price of the anti-corrosion additives has fallen down in the period of COVID-19 as the demand for the anti-corrosion lubricants has fallen down. The import and export of the anti-corrosion lubricants are on halt due to which several manufactures of the anti-corrosion lubricants have faced several losses and exit the market during COVID-19. The price of the anti-corrosion additives which are used in the manufacturing of the anti-corrosion lubricants has fallen down due to which the price of the anti-corrosion lubricants have also fallen down and manufacturers are not able to meet the expected revenue in the year. To cover up the losses in the COVID-19 period manufacture have also decided to merge and produced according to the demand in the market which helps to lower the risk of loss and maintaining stability in the market.

CONCLUSION

The COVID-19 crisis has created the pandemic situation widely which affected the growth of the anti-corrosion lubricant market as the demand in the industrial machinery, the automotive industry has fallen down all over the world. The supply chain has also become a challenge for the anti-corrosion lubricant manufactures as import and export of the goods and raw material have become difficult in the COVID-19 situation. As the government imposed lockdown rules for all the manufacturing due to which manufactures were not able to produce the anti-corrosion lubricants for the specific application which lead to a huge loss to manufacturers and will slow show steady growth in coming years.

Lockdown for more than 3 months in the countries have resulted in the decline of the demand for the industrial anti-corrosion lubricants and also the demand for anti-corrosion lubricants for the automotive, chemical and other basic metal have also fallen as the demand of the automotive has fallen down. After the lockdown the manufacturing sector will increase the demand of anti-corrosion lubricants pace this will help the manufactures of anti-corrosion lubricant to grow in near future.