News #003

In addition to the well known problems related to logistic, the costs of which have more than tenfolded in recent months, the weather in China is making the situation incredibly worse. The torrential rains of recent days with consequent floods have hit the country and have evacuated almost three hundred thousand in the province of Henan alone, to the point that Chinese President Xi Jinping has defined the situation as “extremely serious” by asking the authorities to all the levels of giving highest priority to the safety of people.

The recent drop in oil prices did not contribute to the downtrend of commodities as we all expected. The demand is therefore still weak and we believe that this may compromise the operational rate of the production plants, both upstream and downstream.