Impact Of Epidemic Situation On China's Mining Industry

- May 12, 2020-

With the spread of the epidemic in the world, the anti-epidemic measures adopted by various countries have also continued to be upgraded. Anti-epidemic measures such as blockade of borders, reduction of traffic, urban control, and shutdown and shutdown have brought a direct impact on the global supply chain, and production in multiple industries has occurred to varying degrees. Breakpoint. As the trade volume of enterprises decreases, the demand for the upstream mineral industry also relatively decreases. In addition, due to the obstruction of logistics transportation, the demand, trade and transportation of some mining industries in China have been seriously affected. On the one hand, measures to restrict the flow of people and logistics have led to increased transportation costs of mining products, and cannot guarantee delivery to downstream customers on time; on the other hand, the obstruction of international import and export trade and the weakening of downstream industry demand have led to changes in the demand for mining production. For example, the most upstream key mineral raw materials lithium and cobalt in the field of power batteries, the main production areas of Australia, Chile, Argentina and other countries have implemented control, which will inevitably lead to tight supply and demand of lithium and cobalt. Global power battery production capacity is mainly concentrated in China, Japan, and South Korea, while China's lithium and cobalt mineral resources are highly dependent on foreign countries, and there are potential risks in the supply of mineral raw materials. This also brings new opportunities for the exploration of lithium and cobalt resources in China.