Impact of COVID-19 on the Global Detonator Market
The COVID-19 outbreak has either put business operations on hold or has delayed them. Organizations have either shut down completely or are working at reduced capacity to comply with government-imposed restrictions. Most companies have adopted remote working policies to ensure business continuity, as well as the safety of employees and customers. Businesses are taking precautionary measures such as limited business travel, working in shifts, frequent health check-ups, and observation of hygiene at the workplace. Some of the providers of bulk and packaged explosives have kept businesses operational with necessary approvals from local governing authorities during the lockdowns. For instance, GOCL Corporation Limited’s Indian subsidiary, IDL Explosives Limited, continued its operations at Rourkela, Dhanbad, Rajrappa, Singrauli, and Ramagundam, in contrast to its other plants.
Detonators are an important part of the chemicals industry serving the mining, oil & gas, and construction industry sectors. The demand for detonators and market growth depends wholly upon the performance of the end-use industries. The construction industry has been impacted significantly, facing piled-up inventories and project delays leading to severe losses. Similarly, the demand for coal has seen a sharp fall during the COVID-19 crisis. There was a decline of over 8% in the first quarter of the year 2020 as compared to the first quarter of the year 2019 due to reduced demand in electricity production, which consumes more than two-thirds of total coal production.
Source: National Association of Manufacturers