China’s Ministry of Commerce will actively aid foreign-funded companies to resume business and production activities in an orderly manner and coordinate with companies to resolve difficulties. Ministry will also assist companies in procuring protective materials, according to the ministry’s official website.
Many industries in China were shut due to the Coronavirus outbreak. Enterprises have been shut since Lunar New Year holidays and are likely to resume operations. The ministry will closely track the progress of foreign investment projects and promote under construction foreign investment projects, optimise online government services, established fast channels for government services, coordinate with relevant department to increase protection in terms of land use, labour and hydro power.
Local governments are also directed to help foreign funded projects to resume production work and minimize the impacts of coronavirus.
Davis Index had earlier reported about the impact of the Coronavirus on the metal industry. Prices of aluminium alloys in India increased fuelled by a rise in input costs as domestic markets faced shortage of silicon used as a raw material in alloys. ADC12 prices in Mumbai went up by Rs583/mt to Rs113,250/mt on Monday, from the prior week. LM6 prices rose by 4,000/mt($56.07/mt) to Rs141,000/mt.
Silicon prices rose by Rs170,000/mt from Rs116,000-120,000/mt two weeks ago. India imports silicon from China. With Chinese markets shut amid the coronavirus outbreak, supply of silicon tightened in the market. Shipments are unlikely to leave Chinese shores even in the coming few days.
Japan-based steelmaker Kobe Steel cuts its earnings forecast as the company anticipates Japan’s economy to remain weak amid a slump in exports. Kobe revised its fiscal 2019 sales guidance down by 4pc or JPY80,000mn ($728.79). The company’s net loss is expected to further widen to JPY15,000mn from JPY5,000 announced on Nov 6. Manufacturing and export-centric economy of Japan is expected to remain weak due to the impact of coronavirus, geopolitical risks and other factors adding to the global slowdown.
South Korean carmaker Hyundai announced stoppage of production at its Ulsan and Asan plant citing widespread supply chain disruption amid the coronavirus outbreak in China. Other car makers like Honda, Toyota, Tesla also halted their production units in China. Suzuki Motors reported that it plans to source vehicle components outside China as the virus shutdown threatened to hamper the company’s biggest market, India. Suzuki does not sell or produce any cars in China but secures auto-parts for Indian plants from China.