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Analysis of the impact of the new crown pneumonia epidemic on the abrasive industry 2020-11-27
Analysis of the impact of the new crown pneumonia epidemic on the abrasive industry
Key words abrasives, resumption | 2020-02-17 13: 16: 17 | Source China Superhard Materials Network
Analysis of the impact of the new crown pneumonia epidemic on the abrasive industry
Abstract During the Spring Festival of 2020, the epidemic situation of new crown pneumonia spread rapidly across the country, and traffic control, home isolation, and extension of the Spring Festival holiday were carried out in an orderly manner. However, the epidemic situation had a significant impact on the service industry, transportation and industrial production. There are finished eggs under the covering nest, abrasive tools ...
       During the Spring Festival of 2020, the epidemic situation of new crown pneumonia spreads rapidly across the country, and traffic control, home isolation, and the extension of the Spring Festival holiday were carried out in an orderly manner. However, the epidemic situation had a significant impact on the service industry, transportation and industrial production. There are finished eggs under the nest, and the abrasive and abrasive industry as "industrial teeth" cannot be spared, and it is difficult to carry out the procurement, production and sales. To this end, a reporter from China Superhard Materials Network interviewed entrepreneurs and scholars in the industry and made a simple analysis and explanation of the impact of the epidemic on the industry.

       Slow return to work interrupted

       It has been half a month since the original Spring Festival holiday, but due to environmental impacts, the current production and processing recovery of the abrasive industry is still very slow. The epidemic protection caused the logistics and transportation to be blocked, the raw materials could not be purchased, and the personnel were controlled and isolated at home. Existing employees can only meet the labor needs of individual production lines, and the return rate is less than 30%. Some companies have already prepared materials inventory before the Spring Festival holiday, which can still meet the current production needs, but if the epidemic situation cannot be effectively alleviated, the situation is still not optimistic. Purchasing and sales of small and micro enterprises are basically suspended, but from the perspective of raw material supply, unlike the abrasive market, most product companies have a certain amount of inventory before the holiday. The epidemic has little effect on the product market and the overall price of the product is stable.
       As of the date of publication, according to the resumption arrangements in various provinces and cities, domestic abrasive and abrasive tool companies have fully prepared for resumption of work, submitted resumption applications, and waited for government approval. Although most mills are actively preparing for resumption of production and production, abrasive products are involved in the upstream and downstream industries. As everyone resumes work at different times, even if their own factories resume work, if the upstream raw material supply company is due to logistics and transportation, employee return trips, etc. The reasons for the suspension of production and production have directly led to the downstream product industry falling into a situation where "clever women can't cook without rice". Therefore, the actual large-scale start date still depends on the progress of epidemic prevention and control. It is expected that the shutdown of raw material companies may cause short-term supply shortages and price increases in the future, but products with larger supply than diamond micropowder will be less affected. During this period, it is possible to digest a certain inventory, and the price fluctuation range is not large.
       It is worth noting that due to the particularity of the outbreak of the epidemic, the downstream real estate, stone materials, and automobiles of the abrasive and abrasive industry are in a state of suspension. The rigid demand in the downstream market is weakening, and tool companies are the first to bear the utmost caution.

       Emotional anxiety

       In order to prevent the spread of the epidemic, the Spring Festival holiday was extended, the resumption of work in some provinces and cities was further delayed, and the normal business plan of the mill was disrupted. Production and business are closed, income and cash flow are interrupted, but the rigid expenses of rent, wages, interest and other expenses have caused huge losses to the enterprise. Some entrepreneurs are constantly anxious, and they are more worried about the loss of customers due to business interruption, the default of order contracts, and the difficulty of capital turnover. Some family-type abrasive products companies with smaller volumes and weaker anti-risk capabilities will face bankruptcy and bankruptcy. With the advent of cards, risks may also be transmitted up and down the supply chain, triggering a local crisis.
       The severe epidemic in Hubei, Henan, Guangdong and other regions are important gathering places for China's abrasive and abrasive industry. The diamond saw blade industry in Ezhou, the coated abrasive industry in Tongcheng, the artificial diamond products industry in Zhengzhou, and the The production and sales of the diamond fine powder industry and Dengfeng's abrasive smelting industry will be directly affected, making the abrasive abrasive industry, which was originally subject to trade friction and environmental protection, under downward pressure even worse. China is a major exporter of abrasives and abrasives. If it is recognized by WHO as an epidemic area, the export of abrasives and abrasives products will be greatly affected. If the epidemic situation continues to escalate into an international event, foreign countries will raise the entry barriers for China ’s goods or directly prohibit entry, and the foreign trade export business will continue to be sluggish.

       Tax reduction and burden reduction

       In response to the epidemic, various regions have introduced some policies that are conducive to the resumption of production by enterprises, and encourage all enterprises to achieve normal production while meeting the conditions for resumption of production. At the same time, those who have suffered business difficulties due to the epidemic situation will be given certain preferential measures such as taxation and subsidies to help them achieve orderly operations in the face of difficulties. Qin Chao, executive director of Junrui Diamond, told reporters, "The original high-tech enterprise subsidy that would have to be approved in March in accordance with the normal process, now the Development and Reform Commission, the Science and Technology Bureau, etc. have allocated funds in advance according to the epidemic situation. In addition, production and manufacturing Large-scale enterprises provide financial low-interest loans, alleviate the pressure of corporate cash flow, and help enterprises solve their problems. "
       On the other hand, abrasive and abrasive enterprises are also actively helping themselves. The person in charge of Fun Nike said: "Facing the epidemic situation, through the establishment of epidemic prevention working groups, disinfection and isolation, peak shifts, and actively coordinated with customers to delay delivery, etc., measures to minimize the losses caused by the epidemic." Some mills In accordance with the relevant requirements of higher authorities, prepare anti-epidemic materials, gradually resume work, and actively apply for relevant subsidies during the epidemic prevention and control period to the government, industry, technology, finance, human society and other government departments in accordance with policy requirements. The abrasive and abrasive industry is recovering.
       The development of each enterprise is inseparable from the support of all sectors of society, and it is the incumbent responsibility of each enterprise to give back to the society. During the epidemic, enterprises such as Huajing, Sifangda, Funk, Wald, Houde Diamond, Shengquan Group, Taiyue Abrasives donated materials and donated materials, fulfilled their corporate responsibilities, and cheered for the frontline staff in the fight against epidemic . At present, donations from abrasive and abrasive enterprises are still in progress. They will work together with the people of the country to overcome the difficulties and win the battle against epidemic prevention and control.
       The emergence of the epidemic situation may accelerate the transformation and upgrading of the abrasive and abrasive industry. After the epidemic, as the country increases infrastructure construction and boosts the economy, the abrasive and abrasive industry may usher in a growth situation. At the same time, it will also promote the innovation and development of the emerging industries of the digital economy. Abrasive and abrasive enterprises can take advantage of the policy and actively deploy efficient and convenient production methods such as intelligent manufacturing and the Industrial Internet to accelerate the optimization and adjustment of the industrial structure and make the industry bigger and stronger.
       How hard it is! May Guotai Min'an defeat the epidemic as soon as possible!

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