Summary: The announcement of PHEIC may have an impact on
import and export of Chinese lithium products, and may slow
down the benign processing of raw material at all levels.
On 31 Jan., 2020,
the World Health Organization (WHO) declared China’s Corona Virus
Disease 19 (COVID-19, named by the WHO on 11 Feb.) as a Public Health Emergency
of International Concern (PHEIC). Although the WHO has explicitly stated
that other countries were not recommended to restrict transport or trade
with China, nor completely isolate China. However, the declare of
PHEIC indeed results in a certain impact on China, as you can see, fewer
flights between China and other countries or regions, foreign restrictions
on the entry of Chinese citizens. It is not difficult to imagine that this will
also affect Chinese enterprises to carry out overseas project contracting and
China’s import and export. No exception for the import and export of lithium products.
The author
holds that the PHEIC has a more direct influence on the export of lithium
products, while the import will be indirectly affected. The key is that
PHEIC is likely to temporarily slow down the benign processing
of raw materials at all levels between import and export of Chinese
lithium products, thus resulting in a series of impacts. Generally,
Chinese traders import a large number of lithium ores from abroad, which
will be processed by Li-ion battery related enterprises, forming all
levels of lithium products for domestic consumption and export. The declaration as
PHEIC will prompt other countries or regions to adjust their imports from
China in the short term, directly limiting the export volume of Chinese
lithium processed products.
Meanwhile, the epidemic has seriously affected
domestic production. The depressed demand will eventually lead to a
reduction in imports of lithium ore, and domestically low operation
will not be able to produce enough lithium processed products to meet domestic consumption
and export. Therefore, whether to restore production in time becomes the key
for an enterprise or even an industry to effectively stop loss.
Starting on 10 Feb., we can see the large-scale work resumption of lithium
related enterprises at all levels, and the total capacity is in the rising
stage, which would continue to rise higher until restoring to the
general level, if the COVID-19 hadn’t gotten worse. Besides, not ruling out the
possibility of going beyond the general level of the same period, it is, to
some extent, a sign that companies are desperately trying to save themselves,
and that downstream demand is strongly released.
You can get more updates in CCM China Li-ion Battery E-News. Email emarket1@cnchemicals.com to know more.