Covid-19 Impact: Polymer Resin Market
The impact of COVID-19 pandemic has been witnessed across wide range of sectors and industries. It has significantly impacted the global industrial production and has left an indelible mark on the global economy. Polymer Resin industry is one of such major industries witnessing the crisis posed by this pandemic. The global production of polymer resin has witnessed drastic demand drop as the major end-users are under reeling under production shutdown or are operating with very low capacity utilization owing to the social distancing norms.
The supply of the product was streamline during the first quarter of financial year 2020 owing to long-term and short-term agreements with the producers. However, with slump in global demand the from the major end-users of polymer resins are refraining from renewing or extending the agreements until the pandemic is under control. These supply-demand imbalances are likely to induce an over-supply of inventories that would lead to sudden price drop for some of the widely used polymer resins.
The polymer resin is widely used in automotive, construction, electronics, packaging, and Medical. Majority of the automotive and electronics industries are experiencing decline in demand and slumping production with many of the construction activities locked down. However, outlook of polymer resin market in some of its other end users is projected to remain positive despite short term impact of COVID-19. Polymer resin products are getting lot of notice, as awareness grows of the need for the safety in packaging. Despite these short-term disruptions, the trends outlined in the market study seem to be moderate over the forecast period. Also, the medical plastic resins such as PP, PE, and PC are witnessing healthy growth in demand.
Considering the above points, MRFR has analyzed the fall of around 100 basis points in the CAGR% of the global polymer resin, wherein the pre-Covid-19 CAGR% of the market was expected to be around 6.83%.