Prospects of the development trend of chemical industry in 2020

Chemical industry plays an important role in the economic development of a country, and affects the downstream sectors, such as agriculture, pharmaceutical, polymer additives, etc. Without a smooth supply of chemicals, commercial activities and company operations that use them as raw materials will face obstacles. Unfortunately, the chemical industry is not without interference, and many factors contribute to this. However, enterprises can take appropriate management steps to prepare for these challenges as soon as possible, so as to reduce supply chain risk.

Explore key chemical industry trends

The first step for chemical enterprises to prepare for supply chain risk is to understand the key current and future trends. Many types of research have emerged in the market to predict possible market trends in the chemical industry. Companies should be aware of these trends and adjust their supply management strategies to avoid problems in the immediate procurement process.

In 2019, the chemical industry has made a good response to consumer demand, price fluctuations, fierce competition and regulatory barriers, and is seeking sustainable development. In 2020, the industry outlook gives a similar picture, as companies will continue to struggle with tight trade, slower sales and tighter regulation of chemicals. This means that relying on chemical distributors cannot solve the procurement problem unless the enterprise takes additional measures to establish a seamless supply chain.

Expected trend of chemical industry in 2020

With the continuous fluctuation of oil and gas prices, the uncertainty of the chemical industry is expected to continue until 2020, which will affect transportation costs, manufacturing costs and enterprise operating costs. When the energy market is in chaos, enterprises often need to spend more money to purchase the necessary raw materials. Therefore, with the rise of primary product prices, enterprises will continue to face huge profit pressure. However, chemical suppliers will continue to play an important role in the trade and supply of commercial products, which may help overcome pricing problems.

The slowdown in the US, China, India and other major economies is real. The continuous trade protectionism policy between China and the United States has restrained economic growth and consumer demand, and affected the stability of the supply chain. In addition, there are political turbulence, fundamental changes in laws and regulations due to environmental problems, and other disturbances that cause industry problems.

The pace of technology adoption in the chemical industry will continue to accelerate. More companies will invest in research, development and technology to improve service and product quality. With the development of circular economy, the demand for environmental protection chemicals and sustainability will be increasing next year.

India's position as a new chemical center

Indian chemical companies will continue to benefit from plant closures in China and the European Union. Although Indian companies are small, they are stepping up efforts to improve the output and quality of products produced in India. Even these companies are taking Indian chemical trade seriously and contacting Indian chemical suppliers to buy products.

conclusion

Experts in the chemical industry predict that the results in 2020 will be mixed, and some problems in the previous year will continue to exist. However, driven by capital investment and government support policies, India's chemical industry will usher in growth.