GPCA Says, GCC Chemical Industry Must Plan And Prepare For Post-COVID Period

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GPCA Says, GCC Chemical Industry Must Plan And Prepare For Post-COVID Period

The chemical industry in the Arabian Gulf must intend as well as get ready for the post-COVID period, transforming adversity right into advantage, and also take advantage of the lessons found out to keep and also enhance its global competition, according to the Gulf Petrochemicals and also Chemicals Association (GPCA).

In a recently launched white paper entitled 'COVID and also Chemicals' GPCA provides exclusive understandings into the impact of the coronavirus pandemic on supply as well as need, petrochemical prices, the dual shock from the pandemic and the oil cost collapse, along with the ramifications on the region's supply chain and international profession. According to the paper, the pandemic is revealing flaws in the supply chain that the chemical industry has trusted for decades, which presents a very useful chance to address existing weaknesses and also change the region's supply chain.

Like the chemical industry globally, the GCC petrochemical sector has really felt the stress from the COVID-19 pandemic in the form of plunging petrochemical prices, disturbances on the Chinese market, traveling and also export constraints, along with collapsing need due to a stagnation in crucial end-user markets. On the positive side, demand for items used in the production of sanitizing products, individual protection, and also health care stayed positive and the production of fertilizers was not affected. For chemicals made use of to combat COVID-19, prices have actually stayed moderate, while fertilizer costs improved by 3% in March 2020 compared with February 2020.

According to quotes by global consultancy firm McKinsey, the oil and also gas and chemical markets will certainly start to recover in Q3 2020. Prices are expected to rebound with the resumption of consumer demand. Nevertheless, if the circumstance persists and prices remain clinically depressed past a year, the lasting impact will be extreme.

Dr. Abdulwahab Al Sadoun, Secretary General, GPCA, commented, "These are unprecedented times for the industry not just in the area however around the globe, and GPCA stays committed to sustaining its participants in browsing the ongoing difficulties. With this in mind, GPCA has actually released its most recent white paper on the effect of COVID-19, which supplies exclusive insight into ramifications for the regional chemical industry and also highlights the opportunities to change the obstacles into opportunities."

He included, "The moment is now for chemical players to concentrate on essential locations to strengthen their affordable setting and emerge more powerful from the situation. Companies should study lessons discovered during COVID-19 period to enhance their organizational efficiency. They can additionally utilize transforming consumer attitudes as a result of COVID-19 as an opportunity to enhance their product offering, resolve brand-new customer demands as well as concentrate on technology. Lastly, the COVID-19 dilemma has actually intensified the relevance to diversify regional economies and also focus on value-added chemicals that can not only play a crucial duty in providing unique remedies in healthcare, yet help shield the region from future oil price shocks."