Under the epidemic 2019 novel coronavirus, the problem that the mask is difficult to obtain is increasingly prominent. According to the estimate of mask production in 2018, the production capacity of masks in China is about 20 million per day. Even if each of the 800 million workers were to change a mask every two days, the mask requirements are about 400 million a day. Mask capacity gap is obvious.

On February 9, the national government issued a document encouraging enterprises to rapidly expand the production of medical supplies and mask supplies.

So many relevant enterprises on the industrial chain have reacted to the document. Companies such as Foxconn have joined the team of mask production.

However, the surge in mask requirements in the short term has also upset the balance of supply and demand for other products.

The Limitation in the Capacity Expansion in Non-woven Mask Material

The core material of the mask is non-woven fabric. A surgical mask consists of three layers of non-woven fabric. The inner layer is the ordinary type of non-woven fabric. The outer layer is made of the non-woven fabric which is waterproof. Finally, the mask is sterilized with ethylene oxide and allowed to evaporate for 7 days before it leaves the factory.

Production capacity of mask expands sharply in a short term, and the demand of mask materials will also increase sharply undoubtedly. As a segment with good prospects, the production of non-woven fabric has maintained rapid growth in recent years. In 2017, China has become the world's largest producer of non-woven fabric, accounting for 35 percent of the world's total output. In 2018, China's output of non-woven fabrics reached 3.939 million tons.

Moreover, the factories with non-woven fabric machines are mainly concentrated in the southeast. Most companies resumed work on Feb. 10. However, under the outbreak, non-woven fabric production in Hubei province has been delayed, because it is the epicenter of the outbreak. Therefore, the non-woven fabric prices rise.

The Pressure on the Gross Profit in the Diaper Production

Before the outbreak, non-woven fabrics were mainly used in the diaper production. At present, the non-woven fabric used for masks is in short supply, and many enterprises with the non-woven fabric making machines have join in the mask production.

With the non-woven fabric price rising, it will lead to the increase in the overall cost of diapers manufacturers without the non-woven production line, reducing the profits.

Therefore, the companies without non-woven manufacturing machines will increase the price of their products. For example, in 2010 due to the rise in the price of pulp, the manufacturers of sanitary napkins saw a large-scale surge in price.

Now, the sudden increase in demand for masks has led to a shortage of non-woven fabrics, and the price will also rise. Therefore, it can be judged that other raw materials for the non-woven products will soon face the rising in prices.