Coronavirus Industry Market Recession Crisis
Coronavirus Industry Market
Coronavirus, Industry, market
The car market is in free fall, as a result, more and more manufacturers are stopping production. The situation is no different for household appliances, fashion, textiles, construction and all related industries.
In addition, the staff are reduced to the bone. These are why even without many government decrees, factories are destined to stop. Coronavirus Industry Market
In general, almost all sectors not related, even indirectly, to food and health, will soon be forced to close. The food producers themselves have difficulties in collecting the products (lack of staff) and in selling them (people prefer canned or long-life products).
Sellers cannot travel, meet customers. Portfolio orders are subject to postponements or cancellations. The warehouses are full of finished product made with raw materials 30/40% more expensive than the current market, therefore unsaleable unless substantial losses. Coronavirus Industry Market
Customers ask for payment extensions or they don’t pay at all. Even those who have prospects to be able to produce cannot obtain credit from the banks for the purchase of raw materials.
Lenders prefer to direct the liquidity made available by the ECB and the FED in government securities or financial transactions (purchases of shares or finance for the purchase large groups at clearance prices).Coronavirus Industry Market
In recycling, mountains of plastic and paper begin to amass.
Now in ,the UK, it seems to be experiencing the scenario previously envisaged in the event of a hard BREXIT: empty supermarket shelves, no meat, flour, pasta .. even fruit juices are applying quotas.
China is starting up again, but without strong support for domestic consumption there will be difficulties in returning to the regime.
In the petrochemical sector there is the possibility that the plants and spare parts for the world oil industry will become a Chinese exclusive, given that many western producers have closed their doors.Coronavirus Industry Market
This situation may no longer be reversible.
Author : Bronx