The New Coronavirus 2019 (2019-nCoV) Impact On Titanium Manufacturing Industry And Export Business

The new coronavirus 2019 (2019-nCoV), was discovered from the Wuhan virus pneumonia cases in 2019, and was named by the World Health Organization on January 12, 2020. Coronaviruses are a large family of viruses that are known to cause colds and more serious diseases such as the Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS). The new coronavirus is a new coronavirus strain that has never been found in humans before.

What is clear is that the impact and consequences of this new coronavirus pneumonia epidemic were more serious than SARS in 2003, and were more concealed and contagious. The number of people infected is far more than SARS. But overall is controllable.

The impact on the titanium manufacturing industry and international trade, as there’s a holiday during the Spring Festival. The short-term direct impact will not be particularly serious, but the impact will be significant from mid-February to the entire March. Due to the sharp decline in demand and production, investment, consumption, and exports are affected Significantly. The impact on the titanium manufacturing industry is delayed, especially for trading companies, so the impact on the manufacturing industry will continue throughout the first half of the year.

Impact on export trade. Export trade is one of the troikas for China's economic growth and is facing a severe test. At present, many major trading countries, including the United States, Britain, Italy, and Japan, have suspended flights. If the flight is suspended until the end of March, then two months of international trade and personnel exchanges will be suspended. In addition, negotiations, logistics, and funds will be suspended. The impact of turnover, etc., will be greatly affected throughout the first half of export trade. All goods from China will be treated differently until WHO announces the lifting of the state of emergency, and new orders for food and agricultural products will be difficult to obtain.

Impact on titanium manufacturing. The impact on the manufacturing industry is comprehensive and the longest lasting. Specifically reflected in follows three ways:

1. The first is the impact on delivery. At present, many workers cannot go back to the factory on time, and the supply of materials by many raw material manufacturers is abnormal, resulting in delays and uncertainties in export delivery, affecting capital turnover, and causing economic losses such as compensation due to serious delays.

2. The second is the impact on the supply chain. Now the industrial chain is global, and customers' suppliers are located in different countries and regions. This epidemic will cause some or all orders to be transferred to other countries and regions. Even after the epidemic disappears, it is difficult for Chinese companies to gradually resume normal production. Grab the order back.

3. The third is the impact on cash flow. Failure to produce normally for a long time will result in serious losses for the enterprise. It is estimated that if it lasts for more than two months, the enterprise will have to lay off employees until it closes. Generally speaking, small and medium-sized enterprises are on holiday around the 20th of the lunar month, and it is now 1 month. If start to work at the end of February means consuming two months of reserves, for small and medium-sized manufacturing enterprises, a shutdown of more than 2 months means a break .

However, Chinese government has announced some policy recommendations, such as rent reduction, wage subsidies, financial discounts, training fee subsidies, etc., to ensure some companies resume working on the premise of ensuring safety.

Overall，the impact of this epidemic on the titanium economy need not be too panic. 2020 will be the year when China will win a well-off society and fight against poverty. The country will definitely win the war without gunpowder with the greatest determination and will resolve the economic stability with the greatest determination Development issues to ensure that economic growth is controlled within a reasonable range (over 6%).