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Is the Mask Industry still a Seller's Market?

Views:14     Author:Site Editor     Publish Time: 2020-04-21      Origin:Site


It is ironic that an unremarkable mask has now become a hard currency and the most in short supply. People in some cities even lamented that buying a mask is harder than buying a house.


Are masks so hard to buy?

Let's first look at the production capacity of masks. Last year, China produced a total of 5 billion masks and produced 20 million masks per working day, of which medical masks accounted for 54%. That is, the production capacity of medical masks is 10.8 million per day.

Coupled with the fact that some large enterprises use excess plant to start producing masks, if the production capacity of these enterprises also comes up, how many medical masks can be achieved? According to statistics, these enterprises can add up to 10 million per day. If the production capacity is fully restored, there are 20 million medical masks produced in China every day.

So what is the daily demand for masks in China? There are 1.4 billion people in China, 800 million in urban areas, and 600 million in rural areas. We take an average of 4 people as a family. There are about 200 million families in urban areas and 150 million families in rural areas. Assuming that every family has to go out and consume one mask every day, then China will consume 350 million masks every day.

Of course, some people say that people in rural areas do not need to wear masks at all. Some families may go out to get something. They may use a mask for 3 days, but do n’t forget that the consumption of masks in hospitals is very huge. Especially in some hard-hit areas, the consumption of masks is very huge. So the approximate number, it is estimated that the daily consumption of masks is also in the hundreds of millions.

The daily production of 20 million to the daily consumption of 100 million, which formed a huge gap between supply and demand.

Coupled with the fact that the mask production capacity is taken over by the government and is uniformly deployed by the government, it is even more difficult for the general public to buy masks.


The enterprise resumes work and then adds demand

As companies resume work one after another, these companies must provide adequate protective measures for their employees, and masks are indispensable. If the conditions are not met, the government will not approve the company to resume work. Even if the government approves, companies will not dare to take risks what. Once someone is infected, they may face the isolation of all employees, and the loss will only be greater. During work hours, each employee must consume at least one mask per day. In order to resume work safely, enterprises must require a lot of storage and storage masks.

So there was already a demand gap, and now the gap is even bigger. Fortunately, China is a big country producing masks, and it can barely cope with it. Therefore, we can see foreign reports in the circle of friends. Many people still don't wear masks in the places where people gather.

To put it aside, this is why countries regard the manufacturing industry as so important. Once an emergency occurs, the production capacity must keep up with the rapid changes in demand.


There are signs of outbreaks abroad

The recent outbreaks in foreign countries have also begun to erupt, and the current measures taken by these countries are worrying, and it seems that they are simply not taken seriously. In South Korea, there is even a religious member who has publicly stated that they are not afraid of the virus. Even if they are infected, God will come to rescue them. Even if they die, it will be fine. It can be seen that the situation in this country is not optimistic, and the demand for masks will happen sooner or later. Therefore, many foreign countries have begun to restrict the export of masks. It is believed that more countries will also introduce restrictive policies to protect their domestic masks.

Based on these international and domestic situations, we can draw a basic conclusion: masks will still be very scarce in the future.

That is, the mask industry will still be a seller's market, which can be corroborated by the fact that mask companies in the capital secondary market are being hailed. 

More information please visit the link: http://youtu.be/2ege8GN6OoY  

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