Automobile Sector Gets the Shot in the Arm, Q3 and Q4 are Likely to Put an Improved Show
- 26-Jul-2021 4:00 PM
- Journalist: Harold Finch
Shortage in semiconductor chips, demand slag and other regional factors weakened the market landscape for the automobile sector which observed stagnant to negative growth in the last few quarters. Although, after putting a poor performance in H1 of 2021, increased numbers are likely to be on the cards as strategic manufacturers of engineered materials for the automobile sector remarked in their financial reports.
Demand deterioration has been a key factor that led to the weakened production in the US and Germany, which form the major hotspots for automobile manufacturing. A peculiar situation also confronted the automobile sector in US when production was hampered due to limited availability of the microchips. US’ Celanese Corporation, a key manufacturer of engineered materials for automobile industry remarked in their Q2 2021 report that they have measured some reduced numbers from auto industry although the decline has been less glaring than expected.
Boost in the automobile production will come as a welcome change for various plastics and resins segments, as auto sector forms a key sector for petrochemical consumption. Increased intake volumes are expected in Polyethylene, Styrenics, Polyurethane Foams, Resins particularly Nylon, Epoxy Resin. Polybutylene Terephthalate (PBT) and other petrochemicals.
As per ChemAnalyst, “Conventionally, automobile sector, which observes stagnancy in Q4 is likely to grow on Q3 numbers as automobile production is expected to shift balance and turns the market sentiment more bullish towards the conclusion of 2021.”