Analysts are expecting the coronavirus to have a bigger impact on the petrochemical industry in China than the SARS epidemic nearly 20 years ago, even as the virus is being felt in other ways around the world, like curtailing a visit from a large Chinese delegation to an upcoming U.S. recycling conference.
Consulting firm Wood Mackenzie said Feb. 13 that "it expects the coronavirus outbreak to have a much bigger impact on China's petrochemicals industry than the SARS [severe acute respiratory syndrome] outbreak in 2003."
"We believe the market should recover from late Q2, mimicking the post-SARS trend of a bounce in demand for consumer goods," said Kelly Cui, Wood Mackenzie principal consultant. "However, given the tighter restrictions on transport movement, delayed recovery in operations and higher rate of contagion compared to SARS, the coronavirus outbreak will have a greater impact on all markets — including petrochemicals."
Coronavirus, now officially named covid-19, will be sharply limiting participation from China at the Plastics Recycling Conference and Trade Show, slated for Feb. 17-20 in Nashville, Tenn.
A delegation of 30-40 people from the China Scrap Plastics Association had to cancel its trip to Nashville for the show and for related company visits to other recyclers, said Stephen Wong, executive president of the Beijing-based CSPA and the CEO of Hong Kong-based Fukutomi Recycling Co. Ltd.