Triggered by the epidemic, the UK chemical market faces multiple blows

According to data from the British Chemical Business Association (CBA), the blockade caused by the novel coronavirus Outbreak and the absence of Brexit have worsened the indicators of the British chemical industry. CBA recently announced its quarterly supply chain survey. All indicators have turned negative compared to the results announced in March. According to the results of 58 companies in the UK chemical distribution industry, since the partial blockade was implemented in the UK at the end of March, UK chemical orders, sales and employment have all been hit.

CBA CEO Peter Newport pointed out in a statement: "The novel coronavirus epidemic blockade and severe economic recession, coupled with the increasing possibility of no agreement to leave the European Union, these The supply chain is undoubtedly a baptism."

The UK formally left the European Union on January 31, but it is still in a transition period until the end of the year when the country negotiates a trade agreement with the EU 27 countries. Newport pointed out that in the past few weeks, judging from the statements of both parties, the possibility of the two parties reaching an agreement has become increasingly smaller. The CBA, the British Chemical Industry Association (CIA) and the European Chemical Industry Council (Cefic) lobbied the United Kingdom to retain free trade in goods or workers’ freedom of movement after Brexit. They believed this was the key to the prosperity of the chemical industry.

Newport said that in the past two months, the prospects for the British chemical industry have become extremely bleak. As of April, the British chemical industry is still performing well, but the duration of the new crown epidemic may be longer than expected, coupled with the economic recession caused, and the upcoming Brexit, the triple factor stacks up and does not give people much confidence. .

Although the CBA investigation was carried out in mid-June, when the British had lifted the blockade and the downstream industries had resumed normal operations, the sentiment of chemical companies was still very negative. The CBA survey shows that the current sales volume has dropped sharply, at -31%. The March CBA member company's report showed that the balance was 32%, which means that business confidence dropped significantly by 63%.

Interviewees said the decline in employment rates is worrying for the industry and the economy as a whole. CBA said: "In the eight-year survey, member companies reported the negative trend of the employment rate of -8% for the first time, which also reflects the profound impact of the new crown epidemic and the uncertainty of the level of future business activities."