Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Berger Paints is gradually ramping up its production after remaining closed amid COVID-19 pandemic. The company states clearing previously built -up inventory could take longer than expected since April 2020 sales plummeted to negligible levels. In May, the paint company’s sales inched up from the prior month.


The paint industry is the second-largest consumer of zinc oxide after the tyre sector. This industry is expecting a push from a rise in infrastructure and housing projects which came to halt amid COVID-19 outbreak. The stalled projects are resuming slowly, which in turn could lift the demand for zinc oxide and thereby zinc dross.


The company’s operations were suspended since mid-March until May 4.  By June 3, most warehouses and billing points of the company were operational, barring those in areas with severe restrictions. Despite the outbreak, the company believes demand would gradually improve once all the restrictions are lifted. Demand in the western zone, however, is yet to pick up.


The company is unable to ascertain the impact of COVID-19 on its future operations. Paint sales, though are improving with restrictions being withdrawn.  


The company’s business is in Poland was relatively less affected by lockdown measures compared to other European countries. In Poland, consumption of paint products continued since construction sites were operational, according to the company filing. Berger’s plants in Nepal are shut and are holding large inventories. A decision on the timeframe of this plant reopening is pending. 

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