Ministry Of Industry And Commerce: China Has Never Issued A Ban On The Export Of Masks And Their Raw Materials.

Today (March 9th) evening, media reports reported that from the relevant departments, the State Administration of market supervision and administration has issued urgent notices to the market supervision bureau of 8 provinces and cities such as Zhejiang and Jiangsu, requiring special investigation on the price of melt blown nonwovens to ensure price stability.

The first textile net reporter learned that melted spray cloth is the core material of masks. The melt blown fabric mainly uses polypropylene as the main raw material, and the diameter of the fiber can reach 1~5 microns. It has many gaps, loose structure, and good anti wrinkling ability. The superfine fiber with unique capillary structure increases the quantity and surface area of the fiber per unit area, so that the melted fabric has good filtration, shielding, heat insulation and oil absorption properties. It can be used for air, liquid filtration materials, isolation materials, absorbing materials, mask materials, thermal insulation materials, oil absorbing materials and wipes. Domain.

In March 8th, the State Council SASAC introduced to the outside world that faced with the blowout demand of the core material of masks, the SASAC of the State Council instructed the relevant central enterprises to speed up the construction of the production line, increase production as soon as possible, expand the supply of melt blown cloth market, and provide protection for epidemic prevention and control.

Information from the SASAC's special working group on medical materials showed that as at 24 hours in March 6th, the volume of melt blown cloth reached by the central enterprises reached about 26 tons. With the completion and commissioning of the new production line, the volume of melt blown fabric is expected to increase significantly in the coming week. The SASAC and the central enterprises will continue to step up efforts to ensure the supply of medical materials such as medical masks and other raw materials.

The sudden outbreak of the new crown pneumonia has made the respirator a hot commodity. In addition to textile and garment and related enterprises to step up production, some enterprises with similar industries also have new production lines, and put them in the production of masks. As a raw material, the price of meltblown cloth is also rising all the way. One day, a price has been reported by the media. At ordinary times, only 10000 yuan per ton of melt blown cloth has been quoted to 700 thousand yuan per ton. Even so, it is also the source of supply. Some small scale mask manufacturers have to stop production and stop production.

China gold company analyst Lu Chen said that in the current situation of domestic petrochemical enterprises to actively increase production of fiber materials, the supply of upstream fiber materials is relatively adequate, and the downstream mask factory production capacity is also increasing under the efforts of the downstream enterprises to actively resume work and expand production capacity, but the supply of melt blown nonwoven fabric in the middle reaches is still in a relative shortage.

Observation shows that the production and efficiency of polypropylene fiber has limited contribution to the profit growth of petrochemical enterprises. According to the data of the national development and Reform Commission, the daily output of the national mask is about One point one Million. Lu Chen can produce about 250 thousand N95 medical masks with 1 tons of polypropylene fiber material, and the daily demand for fiber materials is only 440 tons. In 2019, the output of polypropylene fiber in China was about 900 thousand tons, and the daily output reached 2466 tons, much higher than that required for the production of masks, and fiber production accounts for only about 4% of the total output of polypropylene in the whole country. Judging from this, related enterprises will have a limited contribution to earnings growth in the short term.

Zheng Kai, a researcher at China Merchants Securities, believes that the risk factors that affect the earnings expectations of the masked businesses of the listed companies lie in three aspects: the supply of respirators, protective clothing, melted spray cloth products, the unified regulation and control of the national epidemic prevention materials, and the unexpected consumption demand. In particular, the supply of masks, protective clothing and melted cloth products has increased significantly, and the demand for epidemic prevention materials has been driven by the epidemic. At the same time, a large number of enterprises have also expanded the production of anti epidemic materials business. Since February, domestic mask production has improved significantly. If a large number of enterprises continue to enter the industry in the whole country or even the whole world, the supply of new products will greatly expand, and match the increase in demand, which may lead to an excess of supply of relevant anti epidemic materials, resulting in a decline in the profit margins of products.

It is understood that the current domestic epidemic situation has been better alleviated, but the overseas epidemic has also brought some pressure to the domestic, overseas imported cases become the focus of prevention and control. At the same time, with the expansion of the work face, masks are still needed for people to go out and work. When considering the regular replacement needs and the psychology of people masked stores, the national masks are expected to be still in a situation of less supply. In the future, with the public's awareness of strengthening public environment and personal hygiene and epidemic prevention, the demand for protective products such as respirators is still large. It accounts for 50% of the world's total. However, in the early days of the outbreak of the domestic epidemic, China's capacity was basically supplied to the domestic market, and overseas importing donations and other overseas imports eased the shortage of materials. With the increase of overseas epidemic situation, the demand gap of overseas masks gradually emerged.

The Ministry of industry and Commerce has said before that: the production and supply of protective clothing has changed from a very short supply to meet the demand, while encouraging domestic enterprises to actively meet the needs of foreign countries and standardize the production and export according to the corresponding standards. The Ministry of commerce also pointed out that our country has never issued a ban on the export of masks and their raw materials, and is willing to help the countries concerned in their efforts to overcome their own difficulties while providing medical protective materials such as masks.

Here is a point of view, the current new crown virus epidemic is still in the global spread period, but if the follow-up global epidemic is gradually under control, masks and other epidemic prevention materials demand will drop. If the epidemic can be effectively controlled within a short period of time globally, the demand for epidemic prevention materials in the next 1-2 quarters is not as good as expected, which will have a direct negative impact on the sales of the relevant production enterprises.