Demand was still getting weaker in many markets in June because of, but not limited to, supply chain disruptions, seasonal trends, and fears of economic slowdowns.
Demand during the pandemic was strong, as consumer spending was diverted away from services. But recently a series of events are driving down demand.
Supply chain problems such as logistics and shortages of vital raw materials continue to negatively impact demand. In the summer, some companies, shut down for the holidays. And it is highly likely that the rising inflation because of higher energy costs is slowing down spending.
The construction sector, despite the positive data, is also getting weaker as market feedback suggests that new orders are falling, fuelling fears that once the backlog of orders built up during the pandemic ends, the sector could start to register significant falls in activity.
Meanwhile, a strong rebound in the automotive sector is becoming less likely because even if the shortage of vital raw material ends, it is possible for this to happen during a period of low economic growth.
The picture remains complex, but in general almost all players downstream are experiencing a period of lacklustre activity.
The market update is an exerpt fromt the monthly report.
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