The Covid-19 pandemic affected the production and consumption of chemical inputs, to the point of generating a drop in demand from April onwards. This is what the Brazilian Chemical Industry Association (Abiquim) reported.
In this scenario, the data indicates that 36% maintained the rate of utilization of installed capacity in April, that is, around 70%, while 50% reported an increase in idleness to levels above 40% and 50%, and 7% operated at full load, with levels above 90% of installed capacity utilization. The director of Economics and Statistics at Abiquim, Fátima Giovanna Coviello Ferreira, remembers that idleness may not represent the reality perceived at the demand end, due to the characteristics of the sector.
Furthermore, of the companies that responded to the survey, 77% indicated a drop in internal and external sales, clearly giving a more real picture of the strong decline in demand for chemical products. “Companies need to maintain a minimum level of operation to maintain the production of industrial plants and we may have scheduled shutdowns of some companies due to excess stock”, explains Fátima.
“At this delicate moment, with a significant drop in oil prices, it is not possible for our companies to continue paying for gas referenced to oil of US$50-60/barrel. You can't compete. We understand the situation, but this delay needs to be reduced. Despite a relatively good first quarter, our expectation now is for a significant decline in sales of chemical products in general from April onwards, especially due to the strong drop in demand in several important chemical customer segments, such as civil construction and automobiles”, he adds. the principal.
Source: agrolink
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