Masks skyrocket! The price of masks in the United States has skyrocketed, demand in South Korea has soared 76 times, and purchases in Italy are restricted! Trump may use "wartime law" to expand production capacity, the world is waiting for China.......

China Fund News Fei Mo
Some comprehensive people's networks, Global Times, etc.
 
As the global epidemic spreads and escalates, the situation of "hard to find" is re-enacted in many overseas countries.
According to the US CBS report, recently there was a phenomenon of people lining up to buy masks in a medical device store in Houston, Texas, and the price of a single N95 mask rose to $ 20. Amazon, eBay and other e-commerce platform masks have been sold out, and even unscrupulous merchants have raised the price of masks to $ 1,000.

 According to the news, Trump, who had previously judged that "the danger of the epidemic is relatively low," is also changing the caliber. Some officials have disclosed that the government said or may consider using "wartime law" to expand the production of masks and protective equipment. There are currently 270 million gaps in medical masks in the United States.

 In addition, the urgent situation of masks is spreading in various countries: among them, the demand for masks in South Korea has increased by as much as 7650%, and the government has announced the supervision of export masks; Italy has begun to restrict the purchase of masks, and Japan has accelerated the expansion of its production capacity. According to the WHO, the global demand for protective equipment such as masks has surged more than 100 times!

U.S. masks rush

Merchants raise prices and sell short on e-commerce platforms
 

With the outbreak of the United States, masks have become a scarce resource in the United States.

 According to KHOU, a CBS-affiliated television station in the United States, in the past few days, people have queued up to open the N95 masks at the Holcombe Medical Device Store in Houston, Texas.

The person in charge of the store said that the demand for masks began to soar in January. "We contacted the suppliers to provide us with masks so that we could sell them to customers and make them feel safe in this environment."

 
It is reported that at the Holcombe Medical Device Store, a N95 mask sells for between $ 20 (about RMB 140) and $ 25 (about RMB 175). The person in charge said that the price increase was due to a shortage of masks.

 
At the same time, the masks on the US e-commerce platform also became out of stock. According to data from a company that tracks Amazon prices, the price of N95 masks has soared since January. It is reported that dozens of mask products on Amazon are all sold out.

 According to a report from the US Business Insider website, some unscrupulous sellers even started selling masks on eBay for a premium. Under normal circumstances, ordinary 3M masks can be purchased for only a few dollars, but now these masks have been increased to 40-1000 US dollars (about 280.9-7021.4 yuan).

 According to the US Fox News report, the United States Centers for Disease Control and Prevention said on the 25th that the possibility of the transmission of the new crown virus in the United States, or cause very serious interference in the daily lives of the people. The public's response to this warning is also relatively strong, and many masks from e-commerce companies such as Amazon and eBay have sold out.

The person in charge of the store said that the demand for masks began to soar in January. "We contacted the suppliers to provide us with masks so that we could sell them to customers and make them feel safe in this environment."

 

It is reported that at the Holcombe Medical Device Store, a N95 mask sells for between $ 20 (about RMB 140) and $ 25 (about RMB 175). The person in charge said that the price increase was due to a shortage of masks.

 

At the same time, the masks on the US e-commerce platform also became out of stock. According to data from a company that tracks Amazon prices, the price of N95 masks has soared since January. It is reported that dozens of mask products on Amazon are all sold out.

 

According to a report from the US Business Insider website, some unscrupulous sellers even started selling masks on eBay for a premium. Under normal circumstances, ordinary 3M masks can be purchased for only a few dollars, but now these masks have been increased to 40-1000 US dollars (about 280.9-7021.4 yuan).

 

According to the US Fox News report, the United States Centers for Disease Control and Prevention said on the 25th that the possibility of the transmission of the new crown virus in the United States, or cause very serious interference in the daily lives of the people. The public's response to this warning is also relatively strong, and many masks from e-commerce companies such as Amazon and eBay have sold out.

 

Trump may consider "wartime law"

U.S. requires medical protection giant to return to production

 
It is worth noting that, once the attitude of controlling the epidemic was quite changed, the Trump administration also began to feel anxious about the current situation of fermentation in the United States and the emergence of masks.

 

According to World Wide Web, two U.S. officials say the Trump administration is considering exercising special powers under the Defense Production Act to rapidly expand domestic production of protective masks and protective clothing in response to the new crown virus outbreak . The US Congress passed the law at the beginning of the Korean War in 1950. The exercise of the powers conferred by the law would signal an escalation in the Trump administration's outbreak response.

According to US media reports, the United States is asking four overseas companies investing in Asia ’s largest economy to return home to produce medical protective equipment such as masks to protect the needs of the United States. It is reported that well-known mask companies invested by the United States in Asia's largest economy include 3M and Honeywell.

 
However, the above report pointed out that US Department of Health officials pointed out that many raw materials for the production of related products need to be supplied by the Chinese market. Another person familiar with the matter also pointed out that there are few companies in the United States that manufacture the above materials. If they want to rely on their own capabilities to complete production, it may be a difficult task.

Just this Tuesday, US Secretary of Health Alex Azza said that currently there are only 30 million masks in the national strategic reserve, but medical masks require 300 million masks, so it is necessary to ask Congress for funding to purchase supplies.

 

However, the control of the U.S. outbreak is worrying. California Governor Gavin Newsom said on the 27th that 33 people in California have tested positive for the new coronavirus and are currently monitoring the infection of at least 8,400 people. Newsom noted that California health officials currently only have 200 test reagents. "We only have a few hundred test kits, including monitoring tests and diagnostic tests. This is simply not enough to solve the current problem that needs to be addressed," he said.

 Interestingly, during the outbreak, the US Centers for Disease Control published an article that does not recommend that healthy people wear masks to prevent respiratory diseases, including new coronaviruses. The article states that masks should be reserved for those who have new symptoms of coronary pneumonia to prevent the disease from being transmitted to others. US netizens did not buy this proposal.

 

Global "mask shortage" spreads

Demand for protective equipment soars 100 times

 

In fact, the emergency situation of masks is spreading all over the world.

 Due to the spread of the epidemic, there is a shortage of anti-epidemic materials in South Korea. According to data from the China News Agency International Station, the demand for masks in South Korea has risen sharply in the past month, with medical masks growing by as much as 7650%. At the same time, the demand for thermometers has grown by 3100%.

 It is reported that in Daegu City, the outbreak center of South Korea, supermarkets have posted notices that each person is restricted to purchase one mask per day. According to statistics from the Korea Statistics Agency yesterday, the online price of KF94 masks recently exceeded 4,000 won, an increase of 6-8 times over the pre-epidemic situation. Pharmacies, supermarkets and other physical stores are selling at 2,000 won.


South Korea announced on the 26th that it will monitor export masks. According to the Yonhap News Agency, the South Korean Food and Drug Safety Agency stated that the "Export Restriction Order" continued until April 3, during which the South Korean government controlled the export volume of masks to less than 10% of the total production.

On February 21, Chief Cabinet Secretary Yoshihide Yoshiki responded to the problem of insufficient masks at a regular press conference, saying that mask companies in Japan currently operate 24 hours to ensure production and will gradually recover imports from China. It is estimated that the weekly output of masks It will exceed 100 million, and the current supply has doubled compared with previous years.

At the same time, both Italy and Iran, where the epidemic is growing rapidly, are experiencing tensions when masks are out of stock. According to the Italian Consumer Association, in the past each protective mask sold for less than 10 cents, and now some e-commerce prices are 1.8 euros, an increase of up to 1700%. Iran's national masks production plant is fully operational, but its production capacity still does not fully cover the population in the affected areas. In the capital Tehran, the price of masks with breathing valves has risen tenfold, but a mask is still hard to find. The merchant stated that the dealer had raised the price.

"At present, the global market has been severely disrupted." The Director-General of the World Health Organization, Tan Desai, previously talked about the shortage of personal protective equipment such as masks. He pointed out that the demand for personal protective equipment such as masks is 100 times the normal level, and the price is 20 times the normal level. This shortage is further exacerbated by the widespread and inappropriate use of personal protective equipment.


Chinese manufacturing industry gathers masks

Global waiting for China to explode production capacity

 
As the world faces a "mask shortage" and more than half of the mask production capacity is in China, countries around the world are waiting for China's production capacity to erupt to solve the current shortage of masks.

 According to the data previously disclosed by the Ministry of Industry and Information Technology, before the epidemic, China ’s overall production capacity of masks was more than 20 million per day, the world ’s highest production capacity, accounting for nearly half of the world ’s production capacity. The current production capacity is almost four times that before the epidemic.

 At present, a large number of mask companies are all in operation, and many manufacturing giants have announced high-profile transformation of production of masks, and mask production capacity will be quickly restored.

 As early as February 6, Sinopec's official Weibo posted an article "I have a meltblown cloth, who has a mask machine" seeking cooperation in the production of masks. The contact of the contact person in the text, Mr. Shen, was quickly exploded, and the partner was also on 3 Found within hours. As of noon on February 7, Sinopec has completed 11 mask production lines with partners.

Many companies even entered mask production across borders. Among auto companies, BYD has produced 5 million masks per day, and SAIC-GM-Wuling joint suppliers have established 12 mask production lines with an expected daily output of about 2 million; Mercury Home Textiles, Sangun Underwear, China Textile, Red Beans, and Good Morning Bird established their own For mask production lines, Foxconn, OPPO, Sanyou Chemical and other processing companies have also joined the production of masks.

At the same time, many listed companies have issued announcements or news to confirm that they will carry out research and development, production and sales of mask machines. For example, Yinghe Technology, Zhiyun Co., Ltd., East China Heavy Machinery, Han's Laser, HKUST Smart, etc.

 The National Development and Reform Commission announced on the 27th that following the daily production capacity of medical N95 masks in China on February 24 exceeded 1 million, the daily production capacity of medical masks in China on February 25 reached 32.12 million and the daily output reached 30.28 million; including ordinary masks, Including medical masks and medical N95 masks, the daily production capacity of masks nationwide reached 72.85 million, and the daily output reached 76.19 million, which were 3.4 times and 7.8 times respectively on February 1. The production capacity utilization rate of masks reached 105%, which initially eased the masks. Supply and demand contradictions.


After increasing the production capacity of corporate masks, they began preparing to export to overseas markets.

 On February 28, Sanye Textile said that the current textile raw materials in Vietnam are in urgent need, and the company's textile products can be used for mask production; a small amount of the company's products are exported to Vietnam. Aojiahua said on the interactive platform that the company's professional antibacterial masks are mainly exported, such as North America, Southeast Asia, Japan and other countries. At present, the masks have been launched on the company's e-commerce platform.


At present, many investors have begun to ask questions to listed companies. Among them, there are as many as 159 questions about the export of masks on the interactive platform.

Zhongtai Securities believes that from the demand side, the overseas epidemic lags behind China and is currently in the early stages of an outbreak. Masks in severe epidemic areas are out of stock. From the perspective of global mask purchase restrictions and skyrocketing prices, demand for masks has increased dramatically. From the perspective of the supply side, in order to meet the domestic market demand and increase exports, China still needs to continue to increase the production capacity of masks.
 

Guolian Securities believes that despite the cross-border conversion of many companies, the shortage of upstream raw materials for meltblown nonwovens cannot be resolved in the short term. With the resumption of labor and the continued fermentation of overseas epidemics, the short-term global mask shortage will continue. In the medium term, after the epidemic, countries, hospitals, local governments, businesses, and families have greater incentives to maintain strategic reserves of preventive materials such as masks.

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