How Does Coronavirus Affect Stainless Steel Industry?

Today(February 24, 2020), Guangdong announces that the First-level responds to major public health emergency adjusts to second-level, which is a signal for all people in Guangdong, the first-level emergency lasted for one month now comes to an end and people's life and production shall be gradually back to normal. Coronavirus is now under control within China, and our office is in normal operation. However, the backlash of this outbreak is impacting every corner of the economy. Although people’s daily life is gradually back to track, our living tools needed time to recover. 

China as the major steel producer in the world, it goes without saying the influence to the stainless steel industry is significant. To better recover from the outbreak and handle the challenge, to understand the situation and the influences are meaningful to people in this industry.

Because of the former first-level emergency, every manufactures responded to the government’s requirements about controlling the epidemic and changed its production schedule and plan. Generally, for the stainless steel industry, the most influential factors are as follow: 

logistics was the fatal one. It was restraint because the transportation was stopped and the ports were blocked, which made the transport of materials and products failed to run sufficiently.
Secondly, downstream companies
delayed working. About 10 days before, only 40% of the companies were back to work. Areas that are affected greatly will further postpone. Moreover, many downstream companies have demanded to delay pick up goods. 
Thirdly, due to the epidemic happened abruptly, most stainless steel companies are
short of materials inventory, which threatens the production.
Last but not least, the price is struggling to maintain, but if the demand and the pressure of stock do not recover, the
fall of the price is visible.

During the Spring Festival, some companies had a plan for maintenance. Affected by the virus, many companies prolong their idling period. Many traders and manufacturers in Foshan and Wuxi market postponed their work to the end of February and mills are lack of productivity. 

Like the butterfly effect, the epidemic not only influences the domestic market, but also the abroad market. Export is also highly influenced by logistics, as the prevention and control of the epidemic in ports make the efficiency poor, which extends the delivery period. Besides, other countries have enhanced quarantine against ships from China, and domestic traders delayed working, which are also affecting the export. 

As the epidemic eases, the stress over companies is releasing and now many begin to produce. To overcome the epidemic, government and enterprises are united. On one hand, enterprises should provide protection for employees, and produce in line with the market demand, should not enhance production regardless of the transportation and bid up the price.  On the other hand, the government reduces the tax in the areas that are seriously affected by the virus and provides masks for the enterprises that need it.  

Jinling Steel Solutions has been proactively responded to the crisis. We prolonged our employees’ paid holiday, advocated working from home, help them to buy masks for daily usage as well as provide masks and disinfector for work. All employees are token temperature twice a day to ensure safety for everyone. Being strict to ourselves is the best and reliable way to better welcome the good days.


Share this Post: