Hubei Province to Remain Shut till March 10
China's Hubei province has ordered all companies to stay closed until 11 March signaling that the effect of the coronavirus is unlikely to fade soon even though there is a drop in new cases. The only exceptions are companies in critical industries, such as those involved in fighting the coronavirus, as well as utilities such as oil and gas suppliers and the food industry. The extended closure means businesses in Hubei are likely to be shut for at least 45 days since the start of the lunar New Year on 24 January.
According to a Caixin report, Baowu Group’s Qingshan based Wuhan Iron and Steel has been hit hard by the outbreak. Since the outbreak began, concerns about infections and the manufacturer’s prevention efforts have emerged. Factory workers generally commute to and from work in shuttle buses, and need to shower and change clothes together before starting work. As of February 13, Baowu Steel had reported 119 infections, two deaths, 51 suspected cases and 915 workers had been put into isolation. Wuhan Iron and Steel is a crown jewel of the Baowu Steel Empire. It employs about 18,000 full-time employees and can produce up to 14 million tons of steel products a year, including home appliance panels, electrical steel and rails etc.
While more factories, businesses and construction sites are slowly reopening, the limited data available so far suggests manufacturing is still running at levels far below those in the same period last year. Analysts are using pollution levels as a gauge of industrial activity. JP Morgan wrote “The weak resumption of production is reinforced by a set of high-frequency indicators in the areas of energy consumption, real estate transactions, passenger traffic, and air quality.”
Analysts are using pollution levels as a gauge of industrial activity. Major cities in China are well known for being choked by smog, due to the extensive burning of coal by factories. National Australia Bank said “So far this year, pollution levels have been between 20% and 25% lower compared to the same period last year, suggesting there was a substantial decline in industrial activity in the first quarter.”
Hubei reported 398 new confirmed cases of the coronavirus yesterday. There have been 64,287 confirmed cases and 2,459 deaths from the coronavirus in Hubei, according to the latest figures.
Source : Strategic Research Institute