How COVID-19 Impacted on Polydiethylsiloxane Based Products (PES) in Chemicals & Materials Industry ?
COVID-19 Impact on Polydiethylsiloxane Based Products (PES) in Chemicals and Materials Industry PolydiEthylsiloxane based products (PES) refer to the type of high-performance polymer materials available with indifferent chemical properties such as low flammability. The polydiEthylsiloxane based products (PES) have a wide range of applications in many industries such as personal care, healthcare, textile, and several other areas. PolydiEthylsiloxane based products (PES) have a huge amount of durable power that improves the efficiency of the final products. Thus due to the COVID-19 outbreak, the demand for such products has to hamper because of the complete lockdown scenario. But the limited production capacities, lack of workers at the factory level, and supply chain interruptions continue to cause difficulties for the manufacturers in the market. Though, the manufacturers are constantly working with the chemical individuals to stabilize the demand for polydiEthylsiloxane based products. The overall sentiment of COVID-19 has weakened the consumer's interest in polydiEthylsiloxane based products and has minimized its usage. The government and other trade associations are trying to maintain the demand level and thus have taken various steps to equilibrium the demand and supply of the polydiEthylsiloxane based products in the market. AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVES TO BOOST THE GLOBAL POLYDIETHYLSILOXANE BASED PRODUCTS (PES) MARKET In the aftermath of COVID-19, the government has taken various steps in order to maintain the demand and supply of chemicals. The government is also supporting local producers to boost the demand and supply cycle, which hamper due to the COVID-19 pandemic. The government has decided to extend financial and procedural support to domestic companies to kick start local production. The government is considering various stimulus packages to boost the chemical industry. STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE PolydiEthylsiloxane based products (PES) are a major part of the cosmetics and personal care industry. The breakout of coronavirus has shaken the entire chemical industry. Due to this pandemic, most of the production got hit and created a panic situation worldwide. Thus, to maintain the demand and supply, the government took various strategic decisions for the manufacturers. The government supported the local manufacturers getting the raw materials at reasonable rates, which started availing at higher prices. This step helped the manufacturers obtain raw materials at a much lower cost and saved huge amounts of loss. Also, various governments have extended support to small and medium enterprises to reduce dependence on imports, and domestic demands can be catered. IMPACT ON PRICE The prices of polydiEthylsiloxane based products (PES) have been affected due to COVID-19. Also, the downfall in the supply of products in the global market has largely impacted the prices. On the other hand, the government imposed a lockdown in every country. It also canceled all domestic and international flights, which affected the prices of polydiEthylsiloxane based products (PES) and their raw materials. The manufacturers followed the government rules and regulations regarding COVID-19 and tried to start a new manufacturing unit in a different region, impacting the price of polydiEthylsiloxane based products (PES). So, they have shown an imbalance in the overall pricing of the polydiEthylsiloxane based products (PES). IMPACT ON DEMAND The polydiEthylsiloxane based products (PES) have witnessed a dip in demand in various regions due to weak requirements from end-user in the industry, especially in personal care, textile, and several other industries. Due to the economic slowdown, the demand for such products except essential commodities has decreased, eventually reducing the consumption of the things used in them. Also the decline in various production activities, the demand for industrial materials has faced a significant hit. In this way, the demand for the entire chemicals and materials market has been impacted. IMPACT ON SUPPLY CHAIN Due to the outbreak of COVID-19, the supply chain has suffered abruptly. Manufacturers have stock, but they are not getting demand for it. So, there is a situation of oversupply in the market. In this situation, both manufacturers and consumers are facing the timely availability of raw materials. The restriction over transportation and labor availability is another factor that has affected the supply chain of polydiEthylsiloxane based products (PES). At several parts, the manufacturers are struggling for raw material reach, and at the same time, some are struggling with delivering the product. Thus, the impact on supply is not due to one factor but is facing a hit from other manufacturing points. CONCLUSION The pandemic has taken a toll on every aspect of life, including the global economy. With the significant downfalls in many sectors, a collaborative effort of government, industry players, and consumers can win the fight against COVID-19. It continues to inflict the world with appalling economic and social dilemmas, capable enough to leave severe backlash on the economy for the next several years. The first wave had already inflicted severe blows to the population as well as the economy. The currently experiencing second wave is expected to be more disastrous to the masses and several markets. Firstly, the trade war between China and the U.S. has impacted the economy and the outbreak of COVD-19. These two unfortunate events have led to disturbance in the availability and the pricing of various market growth, including polydiEthylsiloxane based products (PES). Though the imbalance between demand and supply and its impact on pricing is considered short-term, it will not have a long-term impact on price. Due to the continuous dropping requirements in application, the manufacturer’s margin is also declining, which they earn from providing polydiEthylsiloxane based products (PES) to various areas. Also, with the continuously dropping requirements of chemicals and materials used in various production activities, the manufacturers’ margin is declining, which they earn from the supply of polydiEthylsiloxane based products (PES). The government is taking steps such as relaxation on tax, fiscal deficit, and others to minimize the impact and maintain the equilibrium in the global market.