THE IMPACT OF NOVEL CORONAVIRUS ON THE TITANIUM INDUSTRY
During the "Spring Festival" in 2020, novel coronavirus infected pneumonia epidemic quickly spread to the China, and the whole country worked together to fight against the epidemic. In order to avoid large-scale population movement and aggregation, home quarantine, extension of the Spring Festival holiday, hubei province closed the city and other prevention and control measures.
Affected by the epidemic, the transport of most products was blocked, leading to some titanium enterprises products difficult to deliver, coupled with the Spring Festival holiday, some enterprises inventory increased; Due to traffic control, the transportation of raw materials is also a problem. Some enterprises have run short of raw materials inventory, and some enterprises are affected by reduced load production due to workers' inability to return home.
Some enterprises delayed the resumption of work after the holiday in this plan, and some enterprises responded to the government policy to reduce the load. Affected by the logistics, the transportation of their products was greatly hindered, the inventory of their enterprises increased compared with that before the holiday, and the transportation of raw materials was also a problem. In the later period, there may be enterprises affected by the production of raw materials. And by the logistics blocked, the downstream or because of raw material problems affect production.
In terms of market price, before the holiday did not adjust the price of the enterprise manufacturers many orders, after the holiday plan to increase, and the current outbreak of serious, enterprises to delay work, the market price has not changed for the time being.It is reported that at present the inventory of foreign titanium dioxide enterprises is on the low level, coupled with the shortage of raw materials continue to rise, recently an international enterprise said after the holidays to raise prices.
At present, the situation of fighting against the epidemic situation is still relatively severe. Titanium enterprises are affected by the epidemic situation on the whole, and the market starts to decline compared with the same period of last year. The whole market is on the sidelines.
On February 1, the people's bank of China and other five departments jointly issued the notice on further strengthening financial support to prevent and control the pneumonia epidemic caused by novel coronavirus ", and introduced 30 measures.The people's bank of China said the impact of the outbreak on China's economy is temporary and the fundamentals of the country's long-term economic growth remain unchanged.From the perspective of the internal and external environment, the positive factors in economic development are increasing and the economy is becoming more resilient, all of which are supporting the stable operation of the financial market.We should stick to the concept of long-term investment and value investment, learn from historical experience, and avoid the unnecessary impact of irrational emotions on the financial market.We are fully confident and capable of coping with the possible impact of the epidemic, achieving victory in the prevention and control of the epidemic and maintaining a sound momentum of long-term and stable economic development.
At present, affected by the delay of downstream construction and traffic control, the market demand for titanium products is restrained, but the epidemic is only temporary. With the end of the epidemic, the downstream demand picks up, and the raw material supply is tight, the titanium product market will be stable and good.