Slowdown of titanium industry because of the Covid-19 during the rest of the year

In the second half of this year, the delta mutant strain abused overseas, and the epidemic situation in many places in China also occurred repeatedly. At present, 14 high-risk areas in the domestic epidemic situation are distributed in four provinces: 8 in Henan, 3 in Hunan, 2 in Jiangsu and 1 in Yunnan; 197 medium risk areas are distributed in 13 provinces. The epidemic has occurred repeatedly in economically developed (Jiangsu Province) and transportation hub (Zhengzhou). 31 provinces (autonomous regions and municipalities directly under the central government) have issued epidemic prevention and control travel reminders: "do not leave the province or city unless necessary" or "reduce leaving the province or city". The repeated epidemic has had multiple effects on China's economy and hindered the recovery and development of the economy.

In the second half of the year, the development speed of Baoji Titanium Industry slowed down significantly. In July, the procurement and shipment volume of private titanium enterprises decreased, and the output of some material production enterprises decreased by as much as 20% compared with that in June. Looking at the reasons for the slowdown of titanium industry, there are two main factors. On the foreign side, first, the epidemic situation abroad has been repeated, which has turned consumer confidence into pessimism. Although Europe and the United States have been stable, the epidemic situation in Southeast Asia is still serious, industrial demand has not been recovered, and demand has decreased compared with the past; Second, the recovery of foreign aviation industry is slow. Boeing has been affected by 737max and the epidemic, and its production has been at a low ebb. The aviation industry has always been a large application of titanium materials abroad. A heavy blow to the aviation industry will directly affect the development of titanium materials industry. At home, the repeated epidemics and traffic control in economically developed areas have had an impact on industrial production. The rise in the prices of raw materials and production factors makes investment and development more cautious, and all kinds of demand slows down. These reasons have led to a decrease in the consumption of titanium in civil industry compared with the first half of the year, and the development speed has slowed down.