has “to
Rubber sector undergoing stress, amidst Covid-19 spread Against the back of a global health crisis
But far more concerning is the automotive industry, adds a report by IHS Markit. The automotive industry was already impaired when Covid-19 started rapidly spreading within China. The country accounts for roughly one-fourth of global light vehicle production and manufacturing sites had to be shut down amid labour shortages, province lockdowns, and logistic problems. This was not only a problem for China, but also for automotive manufacturers in other countries since manufacturers relied on automotive part imports from China. According to IHS Markit Automotive, the global light vehicle production forecast is around 87.2 million units for 2020, which was forecast before the rapid spread of Covid-19 in Europe and the US. This year’s production forecast is lower than 2014 production levels. Global automotive production growth rates were -1% in 2018 and -5.6% in 2019. Global automotive production growth was expected to be -1.9% in 2020, but it is a near certainty that the growth rate will be much lower than pre-Covid-19 views, adds the research firm.
and an emerging global economic crisis,
companies and industries all around the world are dealing with unprecedented
challenges as they try to deal with the Covid-19 pandemic.
Tyre market to drastically affect materials Covid-19 is impacting every single sector globally and one major industry, the airline industry, is struggling with the substantial decrease in the number of passengers and flights, with flights almost grounded worldwide. It is estimated that airplane tyres are required to be replaced after roughly 300-400 take-offs and landings. With the number of flights being substantially reduced, demand for both synthetic and natural rubbers will decrease as well.
Light Vehicle Production 30 25 20 15 10 5 0 G re at er Ch in a Ja pa n/ Ko M re id a dl e Ea st /A fri ca N or th Am er ica So ut h Am er ica So ut h As ia
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© 2020 IHS Markit
Source: IHS Markit Automotive 3 MARCH/ APRIL 2020
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