Pandemic Impact On Prices – Chemicals & Plastics
The COVID-19 pandemic disrupted global supply-demand balance, sharply impacting U.S. Chemicals & Plastics prices. While Organics and Polymers saw major declines, sanitizer-related chemicals surged, creating both cost-saving opportunities and procurement strategy shifts.
The current public health crisis due to COVID-19 has impacted not only people’s lives but also businesses around the globe. The demand in most sectors has shrunk, and with supply and demand unbalanced, the price of most products has been affected. With less demand, most products have seen price decreases, but there are exceptions.
In the Chemicals & Plastics (C&P) space, we saw the same impact starting with Crude Oil and Natural Gas, where the average price in 2020 dropped from 2019 as 36.2% and 25.8%, respectively.
In this article, we analyze the price change in the USA from 2019 to 2020 for Organics (94 products), Inorganics (66), Polymers (32), and Natural Derivatives (17). In order to avoid specific changes due to seasonality, we calculated the average price from January 2019 to July 2019 versus the average from January 2020 to July 2020 in the USA.
USA Manufacturing
As we are analyzing the prices in the USA, we collected the production data from 2019 to 2020 shown below:
The pandemic effect started in March with a lowered production of –5.2%, falling to the worst month in April at –19.7%, then starting to recover at –7.7% in July 2020.
Price Changes
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