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"Crisis" and "Solution" of chemical Industry under COVID-19

wallpapers Howtos 2020-07-15

The Macroeconomic Impact of CoVID-19

Before the Spring Festival in 2020, a novel Coronavirus pneumonia outbreak broke out, and all over the country adopted a series of strict measures, such as extending holidays, delaying the resumption of work, closing villages and roads, and closing relevant markets, to effectively control the epidemic. The epidemic has not only brought great inconvenience to people's lives, but also affected the macro economy and various industries to varying degrees. Since the turning point of China's economy in 2010, the annual growth rate of China's GDP has been decreasing year by year, including breaking 7 in 2015 and 6.6 percent in 2018.According to the National Bureau of Statistics, THE GDP growth rate for 2019 is 6.1 percent .Given the downward trend of the economy and the severe impact of coVID-19 in the first quarter, it is very likely that economic activity will pick up and resume in the second or even the third quarter. It is almost certain that the economic growth rate in 2020 will break 6. On the other hand, consumption, investment and export, the three driving forces of the economy, account for 57.8% of GDP growth, 31.2% of investment and 11% of net exports. In this sense, the impact of the epidemic on China is bound to be more serious.

The Impact of CoVID-19 on Chemical Enterprises

The impact of the novel coronavirus is very extensive. It has a negative effect on all enterprises in the chemical industry supply chain and the internal operation of each enterprise, and has a negative impact on research, supply, marketing and service. After the outbreak of the epidemic, different conditions of road and traffic restrictions have appeared across the country. In addition, the logistics company staff, especially the non-local staff's return problems, etc. have greatly restricted the logistics and transportation. Raw materials purchased from outside need to be transported to the factory area of chemical enterprises. Without raw materials, production cannot be guaranteed. Manufactured products need to be distributed/distributed to downstream enterprises, dealers, stations and ports, etc. If the products cannot reach consumers, the payment for goods will be affected. The clogged logistics transportation is equivalent to the clogged arteries transporting blood. The flow of raw materials, products and information cannot be unobstructed, which affects the operation of the entire value chain of chemical enterprises and leads to the failure of profit and cash flow.

The Grim Global Situation Has not Spared Imports and Exports of Chemicals

In terms of product export: due to the impact of the epidemic, logistics cannot operate normally, which affects the collection cycle of export goods, and orders cannot be delivered on time before the Spring Festival; The goods that have been loaded on board are also likely to be delayed, and there is great uncertainty as to whether the goods that have not arrived at the port will be rejected or there will be restrictions. In terms of raw material import, the impact of the epidemic on crude oil import is mainly due to the situation of raw material storage and berth congestion in ports. At present, Qingdao, Yantai, Longkou and other ports in Shandong province all have demurrage, and the high demurrage fee brings great cost impact to the procurement and operation of enterprises.