A sharp drop in the unit price of medical masks leads to res

Chen Hongyan, Secretary General of the medical equipment branch of China Pharmaceutical Materials Association, said in an interview with the Securities Daily that the price of masks has fallen sharply, which will have a greater impact on those companies that have entered the industry or have a large expansion of production capacity, because it is difficult for enterprises to realize the recovery of early investment in a short time, but for companies that have a certain position in the industry On the contrary, it is an opportunity for industry concentration to increase and highlight brand value.

In novel coronavirus pneumonia epidemic prevention and control period, the mask market demand has increased greatly. As a result, some companies have temporarily changed production or increased the existing scale to mass produce civil protective masks; some enterprises have added new business scope for the production of medical grade protective masks, such as Gree, BYD, GAC group, industrial Fulian, and so on, saying that the daily production capacity of masks will exceed one million.

In addition to these enterprises that are transforming to manufacture masks, such as Tianhua ultra clean, Ogilvy medical, Dow, Yangpu medical, lanfan medical and Yingke medical, whose main business is the production of medical protective products, have made good achievements in the first quarter of this year under the catalysis of mask production capacity.

However, in recent years, the price of masks has rapidly declined, especially in the case of production capacity improvement of production enterprises and sufficient supply of raw materials such as melt blown cloth, the price of a single mask has dropped below 1 yuan. After consulting the e-commerce platform, the reporter of Securities Daily noticed that the price of ordinary medical masks of different brands ranges from 0.5 yuan to 1 yuan, which is much cheaper than the price of 3-5 yuan per piece in previous months.

Chen Hongyan, Secretary General of the medical equipment branch of China Pharmaceutical Materials Association, said in an interview with the Securities Daily that the price of masks has fallen sharply, which will have a greater impact on those companies that have entered the industry or have a large expansion of production capacity, because it is difficult for enterprises to realize the recovery of early investment in a short time, but for companies that have a certain position in the industry On the contrary, it is an opportunity for industry concentration to increase and highlight brand value.

Chen Hongyan said: "the scale of the mask industry is small, so there are a large number of small and medium-sized enterprises. In this epidemic situation, due to the surge in demand for mask products, many enterprises have cross-border production of masks. Now, with the decline in market demand, product price competition is becoming increasingly fierce. Those small enterprises that lack brand support are difficult to compete with large enterprises with brand and scale advantages. In the survival of the fittest, the industry is entering the stage of reshuffle. "

Chen Hongyan also said that although this year's epidemic situation caused tension and price disorder in the industrial chain of medical materials such as masks, it also tested the industrialization mobilization ability and supply chain integration ability of Chinese enterprises to a certain extent, and some domestic brands emerged during this period. In the past, international famous brands like 3M and Honeywell were favored by consumers. Now, domestic masks such as lvdun, CM Chaomei, Zhende medical and Zhongsheng have been sold on a large scale, and have entered the high-end mask market, gradually narrowing the gap with international brands in terms of brand influence.

China novel coronavirus outbreak during the new coronavirus epidemic in 2020, a large number of masks industry increased production and output, and the outbreak of the global epidemic has further stimulated the development of China's mask production. It is estimated that the total output of China masks will exceed 100 billion in 2020, and the output of mask will reach 235 billion 750 million yuan. As the epidemic situation is under control, the demand for masks will decline, and the excess mask capacity will face a big adjustment, and the overall production will fall back in 2021.

Wang Ruiyan, a medical researcher at Huaxia happiness research institute, told the Securities Daily that from the previous delivery of orders by mask equipment manufacturers, the delivery peak has just passed, and the epidemic situation in foreign countries has not yet eased, and the demand for medical materials in China in overseas markets is still strong. Therefore, enterprises with overseas qualification for production and sales of medical materials will still benefit from market demand For growth. Even if the price of single mask products drops, some large-scale automation enterprises can still make good profits through the advantages of scale and single product under the advantage of industrial chain integration, while those OEM manufacturers that only supply the domestic market are likely to gradually disappear in the second half of this year.