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Impact of Covid-19 on Biphenyls Market

 

Biphenyls: Introduction

·         Biphenyl is primarily used as a fungicide for citrus crops. It plays an important role as an antimicrobial food preservative and antifungal agrochemical. Biphenyls are important structural analogs, which are used significantly in synthesis of various compounds. Earlier, biphenyl derivatives were widely used as pesticides in the form of polychlorinated biphenyls.

·         Biphenyl appears as a clear colorless liquid with pleasant odor. It is insoluble in water.

Key Drivers of Biphenyls Market

·         Biphenyl is widely used as food preservative and flavoring agent. It is found in several fruits and vegetables such as wine grapes, carrots, peas, bell peppers, tomatoes, milk, smoked fatty fish, cocoa, roasted peanuts, buckwheat, and tamarind. Generally, fruit packaging is impregnated with biphenyl, which evaporates into the air space surrounding the fruit. Some biphenyl is absorbed by the fruit skin.

·         Biphenyl is also widely used in formation of synthetic intermediates for synthesis of hetero aromatic and polycyclic aromatic compounds, as it possesses a wide range of properties. This is expected to drive the global biphenyls market during the forecast period.

Agrochemicals Application Segment to Offer Lucrative Opportunities

·         In terms of volume, the agrochemicals application segment accounted for major share of the global biphenyls market in 2019. Biphenyl is used in the agricultural sector as active ingredient for controlling plant pests. It has very useful curative, preventive, and systemic properties. It is used to protect numerous cultivated plants. The compounds of biphenyl can be used to inhibit or destroy pests that occur on plants or parts of plants of different crops, while at the same time protecting parts of the plants that grow later

·         Biphenyl is also employed in organic syntheses, heat transfer fluids, dye carriers, food preservatives, and as intermediate for polychlorinated biphenyls

Volatility in Raw Material Prices to Hamper Market

·         Biphenyl is a benzenoid aromatic compound, which occurs naturally in coal tar, crude oil, and natural gas. However, currently, the prices of these materials vary, due to the global coronavirus pandemic crisis. This is hampering the global biphenyls market.

·         Prices of biphenyl have been increasing since the last few years. They are estimated to rise further during the forecast period. Thus, volatility in raw material prices is likely to restrain the biphenyls market.

·         Butyraldehyde is also used as a pesticide and crop protection chemical. However, it poses health hazard as well as environmental threats through direct contact. This is projected to hamper the market during the forecast period.

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Covid-19 Impact on Biphenyls Market

·         The COVID-19 pandemic has impacted a large number of countries across the globe. Various measures introduced to deal with the pandemic, such as lockdowns, decrease in trade activities, and shutdown of various factories and workplaces in several countries, could save lives; however, these measures are having wide-ranging economic effects and inducing economic contagion. Along with the risk of slowdown of global growth, the effects of COVID-19 are adversely affecting various sectors in economies across the globe.

·         The chemicals industry is also likely to feel the impact of the coronavirus pandemic. The chemical sector’s supply chain has historically been strongly dependent on China, which has been significantly impacted by the COVID-19 pandemic. Logistics in China was also a matter of concern during the pandemic, as it significantly affected the sales of chemical production companies.

·         In April 2020, the prices of crude oil suffered the biggest decline since the start of the Gulf War in 1991. This collapse caused a major shift in chemical feedstock prices and the global competitive order. The U.S., losing its cost advantage from shale gas, and the Middle East have been negatively impacted. Thus, the impact of the Covid-19 pandemic is estimated to be high on the biphenyls market in 2020 and 2021.

 

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Asia Pacific to Hold Significant Share of Global Biphenyls Market

·         Based on region, the global biphenyls market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa

·         Asia Pacific is estimated to constitute major share of the market, owing to the presence of a number of agrochemicals manufacturing companies in the region. China is expected to account for prominent share of the biphenyls market in the region, due to the presence of large number of chemical companies in the country.

·         The market in North America is projected to expand at a rapid pace during the forecast period, due to increase in the production of specialty chemicals across the region

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Prominent Players in Market

Key players operating in the global biphenyls market include:

·         Springchem New Material Technology

·         Henan DaKen Chemical

·         Henan Tianfu Chemical

·         Mainchem

·         ATK CHEMICAL COMPANY LIMITED

·         AB PharmaTech

·         Beijing Green Guardee Technology

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