Issue 20/2020 - Global Chemicals Quick Facts

Severe supply disruptions caused by the global pandemic have accelerated the digitalization of the chemical distribution industry, while the pandemic has widely affected the end markets of chemical distributors and changed supply chains
.
Affected by the pandemic, global chemical distributors are rapidly shifting to digital interaction, not only within dealers, but also with customers, and although the digital transformation of the chemical distribution industry has been going through several years, the pandemic has greatly accelerated the process
.
Some chemical market demand has rocketed, such as detergents, hand sanitizer, etc.
, while others, such as oil and gas
, have fallen sharply.
Some of these factors, especially digitalization, may be long-lasting, and some may disappear
as the pandemic eases.
Terry Hill, CEO of Maroon Group, said: "The coronavirus pandemic has accelerated the digitalization of the chemical distribution industry, and suppliers have had to adapt to the status quo
.
”

Asia still dominates the global motorcycle lubricants market

The latest research report by Klein & Company states that the Asia-Pacific region will lead the global motorcycle oil market to grow
at a CAGR of 1.
5%~2% over the next four years.
According to Klein Company, the global demand for motorcycle lubricants in 2019 is expected to be 1.
5 million ~ 1.
6 million tons, and the Asia-Pacific market accounts for 70%
of it.
In a webinar on October 7, Sushmita Dutta, project manager in Klein's Energy Practice, predicted that the global demand for motorcycle lubricants is expected to fall to 1.
3 million tons
in 2020 due to the impact of the coronavirus pandemic.
The extent of the reduction in different countries will depend on the severity of the economic impact of the pandemic and the duration of the
lockdown.
However, the global motorcycle lubricant market demand should recover
in 2021.

The pandemic accelerated the shift from oil to renewable energy in refineries

Analysts at Axis said the coronavirus pandemic has spurred an increase in the number of refinery-related renewable energy projects, while leading to delays and cancellations
of traditional petrochemical projects.
Michael Connolly, senior advisor to Axis Corporation's global refining group, said: "The coronavirus pandemic has accelerated the decision-making process
.
Where people were previously uncertain about these shifts, the pandemic has shown how quickly demand can diminish, and it has been a catalyst
for these decisions.
He noted that several petrochemical projects have been cancelled or postponed
this year.
"The pressure on petrochemicals from recycling and the circular economy has raised concerns about some of these large petrochemical investment projects
," Connolly said.
This has prevented some refiners from making the final decision
to transition from traditional petroleum products to petrochemicals.
"Since the pandemic, refiners have announced that they will develop projects related to renewable energy, which are often linked to
the closure of traditional refineries.

The new energy vehicle industry creates new opportunities for PP composites

The shift to electric and hybrid vehicles in the global automotive market is creating significant new opportunities
for polypropylene (PP) composites in vehicle lightweighting and power management, according to a new report from AMI Consulting.
Despite the slowdown in demand due to the coronavirus pandemic in 2020, the market penetration of PP composites is still rising
.
PP composites not only bring some inherent advantages (such as low density), but also see enough technological developments to allow them to better compete
in semi-structural applications.
Demand for PP composites in Asia accounted for 51% of the global market share in 2019, compared to 26% in Europe and 23% in the Americas, driven by the growing demand for new energy vehicles and the demand for
lightweight and durable battery housings.