Maritime Transport Difficulties Surface Due to COVID-19 Lockdown Measures in Asia Pacific

The constant evolution of the COVID-19 (coronavirus) situation has compelled manufacturers in the Asia Pacific expanded perlite market to adopt new manufacturing and distribution strategies. Chemviron Carbong— a provider of activated carbon purification systems is anticipating a global impact on the activated carbon availability from Asia, since the region has been under scrutiny for lockdown measures. Since expanded perlite is used in advanced filtration systems, manufacturers are increasing their efforts to tackle logistics and transport operations in Asia Pacific.

Companies in the Asia Pacific expanded perlite market are taking additional initiatives to abide with the guidelines issued by the local authorities and health organizations. As such, companies are facing maritime transport difficulties in Asia Pacific due to lockdown measures. They are closely monitoring the COVID-19 situation and updating their strategies for maintaining steady supply chains.

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Moreover, lockdowns imposed by various governmental organizations in Asia Pacific to curb the spread of the COVID-19 pandemic have severely impacted the construction industry in the region. However, the COVID-19 pandemic has positively impacted the agriculture industry in Asia Pacific, owing to an increase in home consumption of food products. China, India, Thailand, and Indonesia are experiencing supply chain disruptions due to factory closures and transportation restrictions. The construction industry in China was at an all-time high before the COVID-19 outbreak. This construction industry in China experienced a dip of 28.1% in the first quarter of the current fiscal year due to the lockdown triggered by the COVID-19 pandemic. Several Infrastructure projects, such as Chongqing-Kunming high-speed railway and Xianyang International Airport expansion plan, have been delayed due to COVID-19.

Japan has experienced a relatively smaller COVID-19 outbreak as compared to that in other hotspots such as China, India, and ASEAN countries. As per the Japan Research Institute Limited, Japan’s GDP shrank an annualized 27.8% in the April-June 2020 quarter as compared to the same period in the previous quarter. Even before the COVID-19 pandemic, the construction industry in Japan was affected by the U.S.-China trade spat and a consumption tax hike last year. However, the lockdown was lifted in all 47 prefectures of Japan in late May 2020. This is estimated to boost construction and other sectors in the country in the near future.

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Green Building Initiatives Catalyze Demand for Expanded Perlite

Green building solutions are emerging as a solution to support the ever-increasing human habitation requirements. Since construction companies are falling short of resources, companies in the Asia Pacific expanded perlite market are increasing the availability for perlite, which deploys versatility and usefulness in green building initiatives. Multiple attribute rating programs such as LEED (USGBC) and new building standards such as the National Green Building Standard (IgCC) are encouraging the use of materials such as expanded perlite to prioritize energy-efficient resources in buildings.

Green roofs are becoming increasingly popular to help manage storm water and reduce the heat island effect in apartments located on top floors. Manufacturers in the Asia Pacific expanded perlite market are increasing their focus in perlite cement-based lightweight insulating plasters that are being used in residential villa projects. Cavity wall insulation, phase change insulation, and sub-floor insulation applications are creating revenue opportunities for manufacturers.

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Perlite Versus Other Components in Horticulture: Which is better?

The Asia Pacific expanded perlite market is projected to mature from a value of US$ 350 Mn in 2019 to US$ 570 Mn by 2030. Perlite is being extensively used in horticulture and in the cultivation of herbs. However, expanded perlite is facing a stiff completion from alternative materials such as vermiculite and diatomaceous earth (DE). As such, low cost and naturally-prevailing minerals in perlite tend to offset the advantages of vermiculite and DE.

Manufacturers in the Asia Pacific expanded perlite market are boosting their production levels to increase the availability for perlite, which is being used in gardening applications. The increase in social media buzz around gardening is another key market driver. Perlite is being used as a growing media to boost the starting of seeds.

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