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The Economic Challenges Created By Covid-19

  • 13 days ago | ICT

    COVID-19 Impact on Mobile Apps in the Information, Communication, and Technology IndustryOverview:The COVID-19 is a pandemic disease that has made the countries standstill for almost three quarters since November 2019 outbreak from China to all the countries worldwide. It affected the biological balance, world & country-wise economy, automotive sector, industrial sector, and others owing to which lockdowns were imposed for controlling the widespread of the viral disease. To prevent the rapid pace of disease spread lockdown is yet the better solution observed in many countries but it harms the economies of the developed as well as developing countries. One of the most common safety precautions imposed by all the countries is the introduction of lockdowns all over the country apart from daily needs services such as food items and groceries. The introduction of lockdown has resulted in the temporary closing of all operations for all sectors till unlock procedure is started by respective governments. COVID-19 pandemic has not only impacted health or medical concerns but also economical situations are facing consequences of this pandemic. These lockdown implementations resulted in a heavy impact on every industry, the majority of the businesses incurred losses. The pandemic situation dig a deep hole in customer’s financial incomes as companies are nearing recession, termination of employment, lay off and others problem are rising in the global market. The contact tracing apps simplify the administration process for health authorities. The government has found immense support from mobile apps to bring the COVID-19 situation under control. Contact tracing apps are a popular medium recommended by many health authorities.For instance,Remote work apps, educational apps, and healthcare apps were high in demand globally. There are no odds to work seamlessly from home without zoom cloud meetings, Slack, Skype, and other enterprise apps. Enterprises have embraced elastic workplace reality to witness a responsive and zero-latency transition while working from home.Impact on Demand of Mobile Apps:During Pandemic, certain mobile apps have made our lives much easier under house arrest. On-demand apps, grocery apps, entertainment apps, and digital payment apps have skyrocketed during the crises as people were not allowed to go out. Companies and businesses that have resorted to digital platforms at the right time have started reaping their benefits.This pandemic is an eye-opener for businesses that consider mobile apps to be optional. This quarantined period has increased messaging, video calls, games, and video streaming among others soaring the market. The mobile app industry has more than 5 million apps that make it a crowded yet competitive world. However, it is growing at a rapid rate.There is more demand for on-demand apps. Uber was one of the few companies that started to offer a demand-based pricing model, and it paved the way for a better user experience for many other popular apps. Starting from ride-sharing to food, healthcare, beauty, and travel there is always a need for on-demand apps everywhere. To date, 42% of the adult population has used at least one On-demand service. In 2021, the on-demand economy will go deeper into additional verticals and disrupt business and we are hoping to see on-demand apps as one of the key app development in 2021.Impact on Supply of Mobile Apps:The pandemic has resulted in the soaring market of the apps such as healthcare, remote work, entertainment, education, and many more. Due to quarantine, companies, educational institutes have shifted to the work from home criteria. Even the surge of education apps has gone a notch higher upon it. With online education gaining popularity, the teachers and students are depending upon it. In both situations, zoom meetings are the most used app in the market.People also spent more time on social media and entertainment apps to keep themselves entertained. Be it on video streaming, music streaming, or social media. People are spending the majority of their time on these apps. The apps include popular apps such as Amazon Prime Video, Netflix, and MX Player. The number is sticking at a speedy rate that is affecting the ranking of the apps. This is proof of the go-to streaming apps popularity in the market.Health and medical apps usage is slowly increasing at a fast pace and is predicted to grow in the future as well. People are opting for healthcare apps, fitness apps, and medication apps. Along with this, telemedicine and other healthcare apps are used to schedule an appointment for remote consulting, information on symptoms, secure messaging, and so on.Many conventional shopping centers such as malls were closed for a long time. Grocery and e-commerce apps have left no stones unturned to ensure their users have their essentials stocked up during the lockdown phase. People could shop for almost anything and everything through online shopping apps. On top of the shopping apps, e-commerce wallet applications such as PayPal and Google pay have also enabled secure and easy digital payments.Steps were taken by Companies during COVID-19 Situations:Our lives reflect around the smartphone and mobile apps that are connecting us with the world. In this dire situation, mobile apps allow us to gather information at our fingertips. Be it entertainment, working, healthcare, education mobile apps are the major source of knowledge.The businesses are taking precautionary steps to ensure that employees are safe and mobile apps are the way out. This COVID-19 curve is slowly flattening up and our only way to move ahead is to ensure that being consumers and service providers we work together.The rise of chatbots is a major change in the mobile app industry. More than 50% of buyers want more do-it-yourself custom service tools to expedite making an online purchase, and chatbots are the perfect way to extend that sort of customer relationship management.For instance,Starbucks has released an app called ‘My Starbucks Barista’ in which any customer has to tell the app the kind of coffee you want and it places an order for you. With 80% of enterprises expected to use chatbots by 2021 and users expecting quick and precise answers, it is a real business opportunity to integrate a chatbot for a mobile app.IoT-enabled mobile apps are gaining a market share. Brands like Amazon and Google have fully utilized this technology and have strengthened the competition in the IoT segment by introducing the “Echo” line of devices and Google home voice controller respectively. Moreover, Google’s move to acquire wearable company Fitbit for USD 2.1 billion and its collaboration with Nest, a home security camera manufacturer, is an indication that the company is moving fast to use IoT technology.Conclusion:It is quite overwhelming to realize how much are these apps downloaded and stay in demand, where grocery and food delivery apps, healthcare, and educational apps are topping the charts. They can certainly consider the industries where the app market is booming. It may be even wiser for the companies to build apps for the industry that is currently in an inactive state such as the travel industry. This is the industry for which no apps must be getting created now due to travel restrictions and by the time things get normal and the industry starts breathing back again, not many apps will be there in the market. Other such industries are the hospitality and airline industries.

  • 13 days ago | Materials & Packaging

    COVID-19 Impact on Compostable Packaging in Materials and Packaging IndustryThe outbreak of the COVID-19 pandemic has impacted the overall packaging industry, including the compostable packaging market. The compostable packaging market is subjected to a positive and negative impact due to the sudden outbreak of the COVID-19 pandemic. Amidst the lockdown, the market has witnessed high volume growth and better earnings due to a rise in consumption of packaged food and increasing consumer preference towards the use of compostable packaging instead of plastic packaging. According to the survey conducted by compostable flexible packaging company TIPA, it has been revealed that the surge of COVID-19 has changed the consumer perception towards the use of plastic packaging. According to their survey, despite the pandemic, around 85% of consumers believe that compostable packaging should replace general food packaging, while around 58% are willing to pay more for the packaging.Additionally, 67% of consumers have expressed concerns about increased plastic waste during the UK lockdown. This is expected to surge the demand for compostable packaging during and post-pandemic. However, the packaging industry experienced disruption in the supply chain due to the shut down of boundaries and strict lockdowns imposed by the government to control the spread of the virus.AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVES TO BOOST THE GLOBAL Compostable Packaging marketThe pandemic of COVID-19 created a demand for flexible packaging due to growing awareness about hygiene and safety. The packaging industry has low exposure to the COVID-19 pandemic. At the same time, some of the small players and players operating in other sectors such as cosmetics, agriculture were left more vulnerable than others. Post COVID-19 has stabilized the demand for packaging for food, beverages, and pharmaceutical industries. Moreover, the unlocking of the situation and opening boundaries by various nations have regulated the supply of raw materials. Various governments are taking initiatives to regulate the supply of packaging for food, beverages, and pharmaceutical products. Additionally, various governments are liberalizing the regulation in the packaging industry to smoothen and regulate the raw material supply for the industry. Therefore, in the post-covid period, the demand for compostable packaging will increase moderately due to its benefits, such as being lightweight, portable, easy to carry, coupled with consumer behavior continuing to follow safety regulations.STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARECompostable packaging is gaining popularity across various industrial sectors all over the globe. Since the lockdown of COVID-19, the packaging manufacturers are required to follow a series of mandates and procedures to battle the crisis and keep a healthy workspace environment. To combat the current situation and gain a competitive market share, the manufacturers are offering attractive packages. Various marketing strategies are being adopted by the market's key manufacturers, such as product innovation and new product development to sustain the competitive market and meet the changing consumer trends. Adopting such strategic marketing policies by various competitors will help them gain competitive market share after the COVID-19 pandemic.For instances,In December 2020, KM Packaging launched a new range of compostable packaging products. The C-Range of bio-plastic packaging material includes shrink wrap, stretch wrap, adhesive tape, nets, and bags. This product launch will help the company to enhance its sustainable, flexible packaging product portfolio and help offer customers wide range of packaging choiceIn June 2021, the Indian Government’s Defence Research and Development Organisation (DRDO) has developed plant-based packaging as an alternative to single-use plastics. The development will help the Indian Government to achieve the goal of completely ending single use plastic by next yearIMPACT ON PRICE The COVID-19 has impacted the global economy growth terribly. Many organizations remained shut while others scaled down their operations or put their expansion plans on hold as they survived the unpredictable crisis. The outbreak of the COVID-19 pandemic resulted in nationwide lockdowns, and various stringent regulations on border closing were imposed by the governments of nations across the globe, which resulted in the spike in the prices of compostable packaging. Import and export of raw materials were hampered due to the closing of the border of various nations. This resulted in an increase in the prices in countries that were dependent on the imports of packaging. At the same time, the price in the major packaging exporter countries had fallen owing to the larger production than the demand. However, the ease of lockdown and various initiatives by the Government to export and import packaging resulted in the subsequent price drop owing to its availability. The price impact on the compostable packaging market was relatively dependent on specific commodities.IMPACT ON DEMANDThe COVID-19 has resulted in a surge of flexible packaging as they are considered more hygienic due to limited handling. During the COVID-19 pandemic, the demand for compostable packaging increased due to rising awareness amongst consumers to choose compostable packaging over plastic packaging. Growing awareness about the benefits of increased hygiene has surged compostable packaging in various industry sectors such as food, beverages, pharmaceuticals, and others. The pandemic outbreak has also resulted in compostable packaging among various regions due to rising environmental concerns caused by plastic packaging. Furthermore, the food, beverage, and pharmaceutical packaging business are demonstrating resilience in the current situation, while the companies involved in manufacturing packaging for sectors such as hospitality, cosmetics, and travel are witnessing a stagnant demand.IMPACT ON SUPPLY CHAINThe COVID-19 pandemic has highly disrupted the supply chain of raw materials used to manufacture compostable packaging. It was attributed to the lack of resources and transportation, which led to lower access, delayed stock, and supplies of raw materials products. Additionally, many governments restricted the movement of goods across the countries, and the entire supply chain was distorted. Due to the disrupted supply chain, transportation of raw materials has been interrupted, stalling production. Similarly, inflated prices and halt on production of compostable packaging have resulted in the unmet demand for compostable packaging in various end-users such as food, beverages, pharmaceutical, automotive, and other industries. Further, as there was a tremendous increase in demand for compostable packaging by pharmaceutical, food, and beverage sectors due to rising demand for convenience food and portable and handy hygiene products, the distribution had been significantly disrupted.CONCLUSIONCOVID- 19 pandemic has taken a toll on the population and economy. A collaborative effort on governments, public health departments, and hospital fraternity to fight the coronavirus has led to economic slowdowns, lockdowns, and extreme public safety measures. Due to the increasing health consciousness among the consumers, the demand for compostable packaging has constantly increased in the COVID–19 pandemic periods. It is likely to increase to avoid plastic packaging. This is mainly because of preventive measures the consumers follow for the COVID-19, which involves the intake of a healthy diet and consumer trend towards sustainable packaging. However, the supply chain has disrupted during the outbreak scenario because the demand was more for these products. Unlocking of lockdown and opening of boundaries across the world is expected to normalize the supply chain for the market, further attributing to the growth of the global compostable packaging market.

  • 13 days ago | Materials & Packaging

    COVID-19 Impact on Eco-Friendly Packaging in Materials and Packaging IndustryINTRODUCTION Eco-friendly packaging is a kind of environmentally-friendly packaging usually composed of recycled or renewable materials considered sustainable for both individuals and the environment. It is also known as sustainable packaging or green packaging. Eco-friendly packaging can help decrease carbon emissions and create notably limited waste, thereby playing an important role in keeping the planet healthy. There are plenty of alternative packaging solutions that are biodegradable and recyclable such as papercardboard, corn starch, bagasse paper, and others. Moreover, some plastics and metals can be recycled, such as PET bottles, milk jugs, shampoo bottles, ice cream tubs, takeaway tubs, plastic utensils, plastic bags, and steel cans.Although, the coronavirus pandemic has introduced different challenges for the economy and businesses across the globe. Lockdowns have strongly impacted the industrial transform processes that have existed for a long time. Impact on demand and decreased investment have caused major disruptions in supply chains and trading patterns in the global eco-friendly packaging market. COVID-19 is a respiratory disease, and there is no indication that food itself is a vector of its transmission. However, coronavirus, and measures to control its spread, have had profound implications for packaging, such as food security, nutrition, and food systems. This chaos in supply chains affected mainly packaging food availability in some cases, especially where proper packaging could not reach markets, putting pressure on prices on some scarce goods.UPCOMING FUTURE OF GLOBAL ECO-FRIENDLY PACKAGING MARKETAfter the COVID-19, the eco-friendly packaging market will increase in upcoming years because eco-friendly packaging development is a global objective that aims to address the societal challenge of climate action, the environment, resource efficiency, and raw materials. In this sense, an essential strategy is the promotion of green packaging, that is, the use of sustainable materials and designs for the packaging of goods. Moreover, the influence of eco-friendly packaging on the industry and purchasers, including the design and materials used in sustainable packaging, its costs, marketing strategies, and corporate social engagement related to green packaging, drives the market. The impact of eco-friendly packaging in waste management, logistics, and supply chain management also contributes to driving the global eco-friendly packaging market.STRATEGIC DECISIONS FOR GLOBAL ECO-FRIENDLY PACKAGING MARKET AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE The COVID-19 pandemic has disrupted the world economy but governments, have tried to address and mitigate the challenges of COVID-19 and recover from the economic and social crises. These include eco-friendly recovery measures in their policy packages to address the pandemic's short- and medium-term socio-economic impacts. Few measures were not targeted at green sectors or activities. Nevertheless, they are likely to impact the environmental outcomes positively or negatively.Governments across the globe realize the importance and advantages of eco-friendly packaging. It is considered an opportunity to undertake an extensive and fundamental restructuring of critical sectors and activities to support the transition to low-emission, climate-resilient, and resource-efficient economies in socially inclusive ways.There are several actions taken by governments of some nations, such as the Paris Agreement for sustainable development goals and other international environmental agreements, such as the Aichi biodiversity goal, which will improve the well-being of communities and societies over the near future.On the other hand, the government and eco-friendly packaging industries work together to boost the global eco-friendly packaging market. In Canada, Botanical Paperwork is an example of a company that offers a variety of plan table seed paper goods, including many sustainable, eco-friendly packaging options, that can develop into wildflowers, herbs, and vegetables. Moreover, an eco-friendly California marketing company specializes in customized products that include plantable business cards that come flat or folded with a selection of bulbs. This company’s products are made without harmful chemicals out of a hundred percent recycled materials and printed with vegetable-based inks.IMPACT ON PRICEDuring coronavirus, the industry has caused a huge shutdown, and sustainable industry stopped their manufacturing products, which negatively impacted the eco-friendly packaging market. Due to this, the shortage has driven prices too high. Millions of people worldwide were infected with COVID-19 disease. Except for the medical supplies and life support products, most industries have been greatly impacted, and the eco-friendly packaging market is no exception to it. There was an increased consumption in health care industries, medical equipment, and hygiene products to protect from the virus. In which eco-friendly packaging had a crucial role to play by packaging these commodities. This has impacted the price significantly.IMPACT ON DEMANDThe spread of coronavirus has caused a vast shortage of eco-friendly packaging and, due to shut down in many factories, workers were going back home. The pandemic crisis has already led to some of the sharpest declines in demand for certain types of packaging. At the same time, it accelerated growth for others—such as packaging for e-commerce shipments that are emerging as lifelines in this new world. Such changes are presenting majority packaging companies with a new set of challenges.According to the plastic recycling expert Vanden Recycling UK MD David Wilson, there has been a partial shift in public attitude towards plastic during the pandemic. The world is seeing ongoing demand for plastic packaging and increased use in some areas. That is going hand-in-hand with the ability to recycle packaging and the inclusion of recycled content. There has been no reduction in demand for PET and HDPE for use in plastic bottles, and other polymers are also in demand for other plastic packing applications. Therefore, the need for eco-friendly packages is likely to increase undoubtedly. However, it will continue to face stiff competition from substitute packaging materials.IMPACT ON SUPPLY CHAINThe COVID-19 has adversely affected the supply chain of inputs for many businesses, with lockdown policies affecting the movement of people and business operations such as transportation of goods and others. Since most countries restricted borders due to COVID-19, the volume of exports and imports has reduced and, retailers have found it challenging to deliver their products. On the other hand, the important relationship between packaging and logistics has been observed during the pandemic, and a new idea emerged called ‘Sustainable Packaging Logistics’ (SPL). SPL represents a link between green packaging and green transportation. Because both are eco-friendly, one green transportation comprises those modes of transportation that do not depend on diminishing natural resources like fossil fuels. These transportation modes rely on renewable energy sources. Another one is green packaging uses materials and manufacturing techniques to diminish energy use and reduce the harmful impacts of packaging on the environment.CONCLUSIONEco-friendly packaging, also known as green or sustainable packaging, is an emerging area of interest for scholars, researchers, and practitioners worldwide. It has also been observed that the enthusiasm to acquire eco-friendly packaged products of a significant number of buyers is also reliant on value. Moreover, from the business perspective, it has been witnessed that organizations are being forced to adapt green packaging initiatives due to the societal pressure derived from environmental concerns or customers.Thus, during coronavirus, the government took a highly significant and diplomatic decision by which the situation is expected to improve over the coming years economically. Also, it has created favorable conditions for business activities and, at the same time, has increased the level of preparedness for the crisis in the future.

  • 13 days ago | Chemical and Materials

    COVID-19 Impact on Polydiethylsiloxane Based Products (PES) in Chemicals and Materials IndustryPolydiEthylsiloxane based products (PES) refer to the type of high-performance polymer materials available with indifferent chemical properties such as low flammability. The polydiEthylsiloxane based products (PES) have a wide range of applications in many industries such as personal care, healthcare, textile, and several other areas. PolydiEthylsiloxane based products (PES) have a huge amount of durable power that improves the efficiency of the final products. Thus due to the COVID-19 outbreak, the demand for such products has to hamper because of the complete lockdown scenario. But the limited production capacities, lack of workers at the factory level, and supply chain interruptions continue to cause difficulties for the manufacturers in the market.Though, the manufacturers are constantly working with the chemical individuals to stabilize the demand for polydiEthylsiloxane based products. The overall sentiment of COVID-19 has weakened the consumer's interest in polydiEthylsiloxane based products and has minimized its usage. The government and other trade associations are trying to maintain the demand level and thus have taken various steps to equilibrium the demand and supply of the polydiEthylsiloxane based products in the market.AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVES TO BOOST THE GLOBAL POLYDIETHYLSILOXANE BASED PRODUCTS (PES) MARKET In the aftermath of COVID-19, the government has taken various steps in order to maintain the demand and supply of chemicals. The government is also supporting local producers to boost the demand and supply cycle, which hamper due to the COVID-19 pandemic. The government has decided to extend financial and procedural support to domestic companies to kick start local production. The government is considering various stimulus packages to boost the chemical industry.STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHAREPolydiEthylsiloxane based products (PES) are a major part of the cosmetics and personal care industry. The breakout of coronavirus has shaken the entire chemical industry. Due to this pandemic, most of the production got hit and created a panic situation worldwide. Thus, to maintain the demand and supply, the government took various strategic decisions for the manufacturers. The government supported the local manufacturers getting the raw materials at reasonable rates, which started availing at higher prices. This step helped the manufacturers obtain raw materials at a much lower cost and saved huge amounts of loss. Also, various governments have extended support to small and medium enterprises to reduce dependence on imports, and domestic demands can be catered.IMPACT ON PRICEThe prices of polydiEthylsiloxane based products (PES) have been affected due to COVID-19. Also, the downfall in the supply of products in the global market has largely impacted the prices. On the other hand, the government imposed a lockdown in every country. It also canceled all domestic and international flights, which affected the prices of polydiEthylsiloxane based products (PES) and their raw materials. The manufacturers followed the government rules and regulations regarding COVID-19 and tried to start a new manufacturing unit in a different region, impacting the price of polydiEthylsiloxane based products (PES). So, they have shown an imbalance in the overall pricing of the polydiEthylsiloxane based products (PES).IMPACT ON DEMANDThe polydiEthylsiloxane based products (PES) have witnessed a dip in demand in various regions due to weak requirements from end-user in the industry, especially in personal care, textile, and several other industries. Due to the economic slowdown, the demand for such products except essential commodities has decreased, eventually reducing the consumption of the things used in them. Also the decline in various production activities, the demand for industrial materials has faced a significant hit. In this way, the demand for the entire chemicals and materials market has been impacted.IMPACT ON SUPPLY CHAINDue to the outbreak of COVID-19, the supply chain has suffered abruptly. Manufacturers have stock, but they are not getting demand for it. So, there is a situation of oversupply in the market. In this situation, both manufacturers and consumers are facing the timely availability of raw materials.The restriction over transportation and labor availability is another factor that has affected the supply chain of polydiEthylsiloxane based products (PES). At several parts, the manufacturers are struggling for raw material reach, and at the same time, some are struggling with delivering the product. Thus, the impact on supply is not due to one factor but is facing a hit from other manufacturing points.CONCLUSIONThe pandemic has taken a toll on every aspect of life, including the global economy. With the significant downfalls in many sectors, a collaborative effort of government, industry players, and consumers can win the fight against COVID-19.It continues to inflict the world with appalling economic and social dilemmas, capable enough to leave severe backlash on the economy for the next several years. The first wave had already inflicted severe blows to the population as well as the economy. The currently experiencing second wave is expected to be more disastrous to the masses and several markets.Firstly, the trade war between China and the U.S. has impacted the economy and the outbreak of COVD-19. These two unfortunate events have led to disturbance in the availability and the pricing of various market growth, including polydiEthylsiloxane based products (PES). Though the imbalance between demand and supply and its impact on pricing is considered short-term, it will not have a long-term impact on price.Due to the continuous dropping requirements in application, the manufacturer’s margin is also declining, which they earn from providing polydiEthylsiloxane based products (PES) to various areas. Also, with the continuously dropping requirements of chemicals and materials used in various production activities, the manufacturers’ margin is declining, which they earn from the supply of polydiEthylsiloxane based products (PES). The government is taking steps such as relaxation on tax, fiscal deficit, and others to minimize the impact and maintain the equilibrium in the global market.

  • 13 days ago | Chemical and Materials

    COVID-19 Impact on Benzene in Chemicals and Materials IndustryINTRODUCTIONAromatic compounds are organic chemical compounds that are derived during the distillation of crude oil in refineries. Some of the major aromatic compounds are benzene, toluene, aniline, cumene, styrene, xylene, and others. Benzene is one of the simplest (in terms of composition) and a widely used aromatic compound. It is obtained as a co-product during steam cracking of gas oil. Other than this, benzene is also obtained during catalyst reforming of hydrocarbons. It is also used to make other aromatic compounds such as nitrobenzene, cumene, ethyl benzene, and others.The entire world is facing the effects of the COVID-19 pandemic in various sectors and industries. As China is the producer and supplier of most of the raw materials or inputs in various industries, the outbreak of the virus in China has disrupted the entire economy. China being the most significant producer and consumer for chemicals, the entire aromatic chemicals industry has been affected. After China, the chemical industry will be affected severely in India and the U.S.The outbreak of novel coronavirus in China had the most critical impact across the Chinese chemical industry, as the movement of all types of chemicals inside the country and outside the country had suffered. Most of the industries were shut down from the beginning of January 2020, which restricted both demand and supply for benzene. Industrial, traffic, and social activities were largely suspended in China, effectively reducing the intensity of pollution emissions and air pollution levels. As per the data published by the Ministry of Ecology and Environment of the People’s Republic of China PM10, PM2.5, SO2, and NO2 in 337 cities in China decreased by 30.0%, 27.3%, 23.1% and 28.0%, respectively, compared with the values for February of 2020, and the decline was more significant than other winter months.GLOBAL IMPACT The entire chemical industry including aromatic chemical compounds has witnessed a decline of more than 5% earlier this year. This decline percentage has increased to around 20% as the effect of coronavirus has intensified. Also, the sudden outbreak of second wave has again hit the market and the supply chain, which was into the building zone, got demolished once again. The appearance of new variants of COVID-19 has still positioned a threat on the market. Major reason behind the continuous decline is raw material and labor shortages as well as government-mandated plant shutdowns. Also, the dual impact of the pandemic that resulted in shutdown and the March 2020 oil price collapse has exacerbated the oversupply situation that some U.S. chemical producers already faced. This resulted in dip in demand in both local and global markets.The benzene market is dependent on various raw material inputs, such as oil, gas, coal, minerals, and bio-based materials. Apart from this, any impact on end-user companies will have huge implication over the industry. Benzene is used across a broad range of industries to manufacture various chemicals used to produce plastics, resins, and nylon and synthetic fibers. Benzene is also used to make some types of lubricants, rubbers, dyes, detergents, drugs, and pesticides. All these industries are facing downturn in almost all parts of globe and thus have resulted in decreased demand for benzene and other aromatic compounds.IMPACT ON DEMANDAfter the outbreak, the demand for benzene has been observed inconsistent across distinct segments. Before the COVID-19 eruption, benzene ranked in the top 20 chemicals for production volume. As it works as a raw material for production of plastics, resins, and nylon and synthetic fibers along with lubricants, rubbers, dyes, detergents, drugs, and pesticides, many industries are dependent on it. Any impact on the demand of these products, directly impacts the demand of benzene. Soon before the challenge of the pandemic is over and market conditions return to pre-outbreak stages, benzene suppliers will need to make well-informed structural adjustments and restructure their firms to handle this uneven demand scenario.As benzene can also be prepared naturally through volcanoes and fire outburst in forests, many countries have noticed higher benzene concentration. This has definitely increased the production of benzene, but the demand is still struggling to match up the mark. In some countries, as the nation was facing lockdown, many industries were shut, the amount of benzene is air was reduced by 62%.IMPACT ON CHEMICAL MANUFACTURING COMPANY For companies that are into the production of benzene or any other aromatic compounds, the pandemic has had a mixed effect. For certain product lines, low oil prices lowered raw material costs, although the closure of Chinese plants also allowed factories from Europe, the U.S. and India to fill the gap and raise order intakes. Disruptions in the supply chain, however, have contributed to sourcing difficulties for many suppliers. Significant logistics difficulties are also faced by industries relying on Chinese raw materials.Major effect on demand and supply of benzene was felt by the suppliers in Q2 of 2021 rather than in Q4 of 2020. Reduced earnings have already been announced by various aromatic compound manufacturers for Q1 2020. Though many emerging economies have lifted the lockouts, it is not expected that the demand will rise significantly, so these businesses will mostly undergo a U-shaped recovery. Once factories reopen and supply chains become more fluid, benzene producers are most likely to meet their current order obligations before the end of 2020. How early lockdowns are removed in different parts of the world and how rapidly the world will recover from the pandemic will depend on the time taken and scale of recovery.RESTRICTION ON LOGISTIC SUPPORTThe restriction on logistics has been the main challenge for all sectors of the industry. The countries were divided into divided into thousands of islands by the isolation policy when the spread of coronavirus was on its peak. There was huge restriction on movement of people and goods. In a bid to contain the virus, people and cargoes were separated between provinces, cities, towns or even villages. The railways were also stopped in several countries and where it continued to operate, the loading & unloading have been constrained by a shortage of labor resulting at one point in the transport capability dropping by some 50%.Transportation has been seriously impacted. As for cross-border travel by vehicles, if the route had not already been closed, the drivers had to be quarantined for two weeks. Vehicle traffic was often constrained by the provinces coming from states or areas where the crisis was worst. Transportation via water sources was the only alternative left, but even in that situation, many ports declined to work and offer their services. For instance, ports in Jiangsu, refused barges from Hubei to dock.Logistics continue to be a problem for the sector even after the change in the overall conditions. While there are no government road blockages, both for transport purposes and at the plants themselves, there is still a lack of labor. It is expected that it will take some weeks still before normal activity across the whole industry is resumed. In the meantime, supply of Chinese benzene has tightened prompting prices to firm both in the domestic and export markets.TRENDS THAT EMERGED POST COVID-19 IN BENZENE MARKET The speed of business-to-business (B2B) trade adoption in chemicals has been slower than in other B2B sectors until recently. Chemical transactions on US B2B e-commerce websites are increasing at a compound annual growth rate of 3.7 percent (CAGR; 2017-2020), compared with a CAGR of 13.6 percent during the same period for total US B2B e-commerce sales. In a recent study, two-thirds of 76 managers of the chemical industry shared their reliance on other market goals or capability constraints as the key reasons why digital commerce has not been embraced more rapidly by the chemical industry to date.CONCLUSIONThe chemical industry and aromatic chemical compounds market is in the recovery phase. Initially, the industry had to face severe outcomes as China was the first country where this disease was spread and China itself is the major producer of chemicals. Because of this the entire world market was disturbed. Now when the China has almost recovered from this disease, the rest of the world is still struggling and thus, the industry is not up with full capacity.Things will take time, but the benzene market will buck up soon as they are the pillars of global economy. The Ministry is constantly making efforts so that the industry can once again be back on track and the availability of all raw materials and products will become normal.

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