Since the outbreak of novel coronavirus pneumonia, the global trade in oil and chemical industry has changed rapidly with the epidemic situation. Novel coronavirus pneumonia is in a bad trend due to the new crown pneumonia epidemic, and the price of chemical products has plummeted, according to an news report. The market can’t see when the epidemic will end. Asia, with a relatively mild epidemic, has become a dumping ground for chemicals around the world.
However, this does not mean that chemical manufacturers can make more profits. As Asia has become a dumping ground for products, many Asian petrochemical prices have fallen to historical lows, and the arbitrage window for exports from the European Union and the Americas to Asia is closing rapidly. At present, the arbitrage profit margin of ocean shipping to Asian market is very low or not attractive to dealers. The oversupplied Asian market is also unlikely to absorb seagoing goods or arbitrage goods from the EU and the US. It’s just that Asia is a little better off than the collapsing European and American markets.