Increased Carbon Black Demand in Q4-2020
Over the past several months, the world has undergone drastic changes as we have collectively coped with the effects of COVID-19.
Many countries and regions are continuously under the threat of COVID 19. The Carbon black industry has also been impacted on both the raw material supply chains as well as the demand side. Due to the COVID 19 outbreak most industries stopped/delayed production at some point.
(1) The plastic industry has been experiencing a resurgence in self-confidence. Before the Coronavirus pandemic, politicians were more concerned about how to reduce the use of plastics and where their use should even be prohibited, however the IK Industrievereinigung Kunststoffverpackungen (German Association for Plastics Packaging and Films) surveyed its member companies on the effects of the Covid-19 crisis at the end of April. The answers of the more than 120 mostly medium-sized companies show how differently the manufacturers of plastic packaging are affected:
- Almost 50 percent of the companies reported an increase in orders (ranging between 10-20 percent)
- 37 percent of the companies stated that they had fewer orders overall.
- 1/4 of all companies reported declines of more than 20 percent.
While the manufacturers of system-relevant packaging for food, pharmaceutical and medical products were in some cases coming up against capacity limits, suppliers to the automotive industry were confronted with a considerable decreased demand. Other industries were also strongly impacted.
Most companies are already prepared for the potential repercussions of the second Corona wave. Companies have taking precautionary measures in preparation for a second wave, paying increased attention to liquidity and dependence on upstream suppliers (1).
Despite the current so-called second COVID-19 wave, PentaCarbon GmbH witnessess a significant growth for Carbon Black Demand in the 4th quarter of 2020.
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(1) Source: GTAI – Germany Trade & Invest