Demand gap large Huaren pharmaceutical companies began to plan the production of molten spray

after investing in the mask production line, the pharmaceutical company began planning to produce molten spray.

1. Pharmaceutical companies began to produce molten spraysOn April 27, Huaren Pharmaceuticals announced that its wholly-owned subsidiary Qingdao Huaren Medical Products Co., Ltd. intends to renovate three molten nonwoven production lines in the current purification plant, with a total investment of no more than 30 million yuan.The construction cycle of the project is 1 month, the annual output of 1000 tons of fused non-wovens, the project production of non-wovens for the main use of medium-efficiency and sub-efficient filtration, mainly used in the field of medical and health care and air purification, is the production of medical masks, civil masks, the main materials.Two-and-a-half months ago, Huaren Pharmaceuticals announced that its subsidiary Huaren Medical intends to remodel the medical mask production line - plans to build two medical protective mask production lines (N95) and one single-use medical mask production line. Annual output of 46 million disposable medical masks, medical protective masks (N95) 25 million, the total investment of the project does not exceed 10 million yuan. At present, the project has achieved large-scale production and sales.Huaren Pharmaceuticals said in the announcement, as the main material for mask production, the current market supply of molten non-wovens is seriously inadequate, prices have skyrocketed, and the quality is uneven. Subsidiary Huaren Medical to its own funds to build a molten spray non-woven production line, can better meet the company's mask production demand for self-use, effectively alleviate the company's current shortage of mask raw materials, reduce the comprehensive cost of products, but also to control the quality of mask products, improve the industrial chain layout of protective supplies, improve the market competitiveness of products.

2. The market demand for molten sprays is stillFused nonwovens, known as the "heart" of masks, are a key material for the production of medical and civil protective masks. General medical mask is mainly composed of three layers (SMS), the inside and outside two layers are spinning non-woven (S), the middle filter layer is molten spray non-woven (M), the use of microfiber mesh structure and electrostation adsorption virus dust, droplets, play a barrier and protection role.China is the world's largest producer of nonwovens, but the production of molten nonwovens is small. In 2019, China's molten nonwovens production capacity of 8-10 million tons, production of only 55,000 tons, the proportion of the entire nonwovens only 0.9%.In recent years, the application field of molten non-wovens has been expanding, market demand has greatly increased, especially with the global spread of the new crown epidemic, there is a large gap between the supply and demand of molten non-wovens.According to china's industrial textile industry association statistics, as of April this year, the daily production capacity of domestic melt-sprayed non-wovens in about 200 tons (1 ton of molten non-wovens can produce 1 million masks or 300,000 N95 masks).Reportedly, the current domestic market daily demand for masks about 300 million, and then consider other applications of the demand for molten non-wovens, the current production of molten non-wovens there is a large market gap.Some analysts pointed out that the upstream supply of molten non-wovens sufficient raw materials, resulting in the current market shortage of the core reason is that the molten non-wovens from the body is too small, the industry before the outbreak is not fully competitive, after the outbreak, short-term financial and equipment barriers hinder the pace of new enterees.With the full resumption of domestic production and re-learning, as well as the continued global epidemic, mask demand will further increase, it can be foreseen that the future for a longer period of time, melt spray non-woven market demand is still large.

3. Prices remainAccording to the statistics of the non-woven fabric branch of China Industry Textile Industry Association, the production capacity of non-woven fabrics of China's melt spray method in 2018 was 83,240 tons, with an actual output of 53,523 tons. In the outbreak, this production is far from enough, supply is less than demand, and prices rise.Since the outbreak of the new crown, less than half a year, the price of molten spray from less than 20,000 yuan a ton, at one point rose to 700,000 yuan a ton. 　　It is understood that the current state-owned enterprises as the main force of the regular supply of melting spray, more targeted supply, far from meeting market demand. 　　Small and medium-sized molten spray production enterprises smell the wind and move the number of blowouts in a short period of time. As of April 24, there were 4,477 enterprises with "melting spray" in China's business scope, and 2,638 new ones have been added since 2020, most typically in Yang zhong city, Jiangsu Province, the newly "melting spray town". 　　However, on April 11, Yang zhong city held a press conference to announce the high-pressure rectification of melting spray production workshops, at present, all relevant workshops and factories in Yang zhong area have been shut down. 　　According to the China Securities News, the government-controlled molten spray market, mainly Sinopec, PetroChina, CNOOC supply, the price is much lower than the market price, and promised not to increase prices, while outside the control of the molten spray market, the price of molten spray to 600,000-700,000 yuan / ton. At present, the price of 95 products still reached 650,000 yuan / ton, 90 levels below the price has loosened, but also 400,000 yuan / ton.

4. Opportunities and risks associated with the transfer of molten 　　Melting nonwovens production on plant cleanliness, quality management system, testing equipment, production personnel and other requirements are high, pharmaceutical production enterprises long-term harsh production environment can generally meet the production needs of molten nonwovens, but put into production of molten sprays also have some unpredictable risks, such as: the production and sales process of molten nonwovens is greatly affected by the changes in supply and demand upstream and downstream, so there is greater uncertainty in the future market. Once the pneumonia outbreak of the new coronavirus infection is over, it may face the risk of reduced market demand for molten nonwovens, lower market prices and overcapacity in the molten nonwovens market. 　　However, with the great enhancement of people's awareness of protection, the promotion and guidance of national policies, the improvement of primary health level and other factors, the demand for masks will have the opportunity to continue, and the application of molten nonwovens not only masks, but also can be used in the field of health care and air purification. 　　With the market on the melt spray non-woven applications continue to dig, after the outbreak, molten non-wovens still have a large market space, so the risk is basically controllable. 　　China's largest PP melting spray supplier, Doane shares Dong Yuqing also believes that upstream raw materials enterprises, midstream melting spray, molten spray production enterprises can adjust capacity and product switching, there will be no overcapacity situation. Because melting spray, melting spray cloth in addition to the use of masks, but also widely used in urine non-wet, sanitary napkins, insulation soundproofing materials, filtration materials and other fields. 　　As the new crown outbreak progresses and forces enter, it remains to be known how long the molten spray boom will last.
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Cypress Blue
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