MARKET UPDATES – 22.12.21

GENERAL OVERVIEW

• The Omicron variant is likely to be another test of supply chain resilience and could pose a threat to global economic recovery, particularly if China enforces its ‘zero-COVID’ policy, to prevent cases entering. We are currently facing lead times of up to 52 weeks.

• It is predicted that the raw material costs will rise again in the next 6 months resulting in higher component prices.

• China’s on going power outages are causing on-going disruptions across the whole world.