The China Petroleum and Chemical Industry Federation implemented the emergency notice of the Ministry of Industry and Information Technology, and actively did a good job of the analysis of the impact of the new crown virus epidemic. The three major oil companies of PetroChina, Sinopec and CNOOC were contacted and exchanged; China Nitrogen Fertilizer Association, China Phosphate Compound Fertilizer Association, China Chlor-Alkali Association, China Soda Alkali Association, China Inorganic Salt Association, China Synthetic Rubber Industry Association, China Pesticide Association, China Rubber Industry Association, China Coatings Industry Association, China Dye Industry Association, China Synthetic Resin Association, China calcium carbide association, China 14 professional associations such as the sulfuric acid industry association; key enterprises include Dalian Hengli, Huafeng Group, Oak Group and other key enterprises; Henan Petrochemical Association, Jiangsu Petrochemical Association and other relevant local associations, widely understand the production operation and existing difficulties.

From the feedback, large and ultra-large enterprises are generally operating stably, which is mainly reflected in the petroleum and chemical industries, especially the upstream large-scale raw material production enterprises, which are continuous production, including the Spring Festival, May 1st, 11th and other holidays. Production, so most companies in the industry are in production and operation is generally good.

Through contact, enterprises and industries have also reflected some new problems that have emerged in the development of the current epidemic, which deserves high attention from government departments.

The first is the difficulty in transporting raw materials and products, which has led to the rise of products. Affected by the epidemic, there is a severe shortage of workers at ports and stations in various places, which seriously affects domestic shipping and train logistics, and automobile transportation is also affected by local inspections. In particular, the latex industry responded that the downstream milk collagen materials used to fight against the new crown could not be transported, resulting in a shortage of raw materials for downstream glove companies; some caustic soda companies also raised the problem of unbalanced products and untransportable products in order to increase the output of disinfectants such as sodium hypochlorite and hydrogen peroxide. Nitrogen fertilizers, phosphate fertilizers, pesticides and other industry associations have all reflected that transportation will become a bottleneck for ensuring agricultural demand for agricultural chemicals such as fertilizers and pesticides for spring ploughing.

Second, some enterprises are short of funds and prone to breakage. Local refining companies, downstream industries such as rubber, chlor-alkali, calcium carbide and other industries were affected by the decline in sales, and they experienced difficulties in returning funds. Especially local refining companies reflected that capital is the key to the survival of the company. Some chemical companies close to the end of the market, such as coatings, dyes, calcium carbide and other industries also reflect the phenomenon of gaps in the capital chain of the enterprise. Without a better solution, many companies may fail. Some companies with higher debt ratios also have problems with debt repayment and interest payment affecting cash flow.

Third, downstream consumption has weakened and export pressure has increased. Affected by this new crown, transportation and travel are reduced. The three major oil companies and local oil refineries have all reported reduced sales of refined oil products, increased inventories and increased warehouses. To this end, enterprises have reduced their operating load. At the same time, companies and industries such as CNOOC, Pesticides Association and Synthetic Rubber Association report that export is facing new difficulties, and this impact should continue to ferment before the WHO announces the lifting of the alarm and the elimination of panic about the epidemic in China. Enterprises are currently generally worried that if there are other alternative countries, importing countries may not accept products from China. In addition, domestic companies are generally worried that foreign companies are unclear. Therefore, the inclusion of China in the epidemic area and cancellation of orders may have a greater impact on China's chemical product exports. At the same time, affected by the epidemic situation, the willingness of foreign ships to load at Chinese ports has decreased significantly, and exports have been blocked to a certain extent.

Fourth, shortage of labor and epidemic prevention supplies in some downstream enterprises. Many companies and industry organizations have reported that the impact of returning home during the Spring Festival, as well as the cessation of the transmission of the virus and the reduction of personnel movements, have caused difficulties in the use of labor and increased costs for the enterprises. The normal start-up has a greater impact.

According to the problems reflected by enterprises and industries, the Petrochemical Federation put forward 5 policy suggestions.

1. To ensure the normal production of enterprises and open a special channel for logistics. At present, due to epidemic prevention, traffic restrictions in each region are required to be independent. It is recommended that the Ministry of Transport outside the epidemic area establish clear standards to ensure the smooth flow of cross-regional logistics traffic in non-infected areas and open up the key links of supply and demand necessary to resume production. It is about to enter the peak period of spring plowing medicine, and the time is very urgent. In order to ensure agricultural production and food and agricultural product security, it is recommended to coordinate the opening of special channels for agricultural materials and chemical logistics, issue permits to transportation vehicles, ensure smooth transportation along the line, and ensure the supply of raw materials and downstream products. Smooth transportation.

2. Take interest rate cuts and discount loans to stabilize corporate capital flows. Through targeted tax reductions and temporary short-term bank loan repayment rollovers, working capital should be provided for difficult enterprises with a greater impact on the epidemic. Especially for the private enterprises that are in trouble due to the impact of the epidemic, they need to help them stabilize the capital chain and overcome the temporary difficulties.

3. Establish export green channels and appropriately increase export tax rebates. With reference to the impact of foreign trade during SARS, most products exported by China will be greatly affected. In order to minimize the impact of the epidemic on foreign trade, in addition to strengthening the transparency and openness of the epidemic and the communication between the international community, it is recommended to strengthen linkages with international organizations such as the World Health Organization and the World Trade Organization. Use it as a guide and endorsement to optimize During the period of export inspection and quarantine work, we have established an extensive green channel for exporting credit by the international community, and supported Chinese products to go abroad and enter the international market more conveniently. In the case of temporarily weak domestic demand, we should increase export policies and increase export tax rebates.

4. Strengthen the screening of reworked personnel to protect the protective equipment for the epidemic situation. According to the current policy, there will be a wave of rework within the next week. With the arrival of peak return trips for foreign employees, it is hoped that screening will be strengthened in the field of transportation to avoid the danger of infection of employees in production-intensive production enterprises. In addition, protective channels will be provided for production companies to ensure the safety of employees.

5. Give relevant preferential policies. The epidemic caused almost interrupted logistics and transportation, a high staff turnover rate, and difficulty in production and operation of the company. It is recommended that preferential policies such as taxation and electricity prices be given to enterprises in extraordinary times.

Source from puworld