COVID-19 Impact on Transformer Oil in Chemical and Materials Industry
In the oil industry, each dealer has predicted the crises that will occur due to the pandemic situations that the COVID-19 is generating globally in the oil market but COVID-19 has the mixed pattern situation for the oil companies in developing countries. At the same time, the demand for transformer oil that are not used on a more frequent basis has decreased as a result of lock-down and halting of manufacturing units in various regions. For the product ranges sold by manufacturers / dealers, the effect of COVID-19 on the oil industry can be seen.
The coronavirus crisis is affecting transmission and distribution, power generation, railways & metros, and other applications of transformer oil. On the other hand, its impact on oil markets is particularly severe because lockdown in regions has stopped import and export, dealing a heavy blow to demand for oils which have also reduced due to less consumption of fuel owing to decreased electricity demand from manufacturing units and commercial spaces.
For instance,
• Due to COVID-19, BASF SE sale went down by 12% in 2020 which created huge impact on company’s performance
• Ergon has introduced new HyVolt C50A transformer oil which might help to increase their market share in the COVID-19 situation. The product can sustain and function normally in extreme cold weather conditions
• In North America, Ergon has announced an increase in price of naphthenic oils, which will be applicable from 31st July 2020
IMPACT OF COVID-19 ON TRANSFORMER OIL
In December 2019, the appearance of corona virus in China and gradual expansion of the epidemic drastically brought down demand and price of the transformer oil. Lockdown is in force in Italy, Germany, India, UK, South Africa, Morocco, and Spain. Corona driven lockdowns call for people to “stay at home” and avoid unnecessary travels. Essentially, corona restricts all forms of mobility therefore oil consumption by the transportation industry such as trains and ships bound to fall sharply.
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