Monday, February 3, 2020

Impact of the 2019 Coronavirus on the Chemical Industry

Chemical Makers in India May Gain From China Virus Lockdown 
The worsening coronavirus crisis has emerged as a threat to global economic growth. But if it leads to disruption in production of chemicals in China’s Hubei province, the epicenter of the outbreak, then it may benefit Indian manufacturers, according to JM Financial. 
Hubei has a large chemical industry, and the closure in 2016 of Hubei Chuyuan -- one of China’s top producers of dyes -- led to a jump in prices and saw shares of Indian producers rally multifold, the brokerage said in a report Monday. 
“Currently none of the Hubei industries seem to have been impacted and dye intermediate prices have also not rallied,” analysts led by Mehul Thanawala wrote. Prices could start to climb if the epidemic continues to spread and restrict movement, they said....
I think it's too soon to tell what the impacts with the global chemical industry would be, but it could be pretty broad if the Chinese chemical industry goes down for a month or two...

1 comment:

  1. You see the impact already, the battery dropshippers on Ebay can't fulfill orders any longer. The coronavirus plague has potential to be interesting.

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