Recently, due to the obstruction of transportation, domestic orders and exports have been seriously restrained. It is understood that recently, most manufacturers have problems in their supply chains and have difficulties in production and operation. Shipping and truck transportation companies are experiencing long delays. Compared with the level before the closure, the freight volume of Shanghai port has decreased by about 40%. Shipping executives said the goods were transferred to nearby Ningbo to mitigate the overall impact. Citing the latest survey of its members, the American Chamber of Commerce in China said that after the outbreak in Shanghai, more than half of American multinationals in China lowered their annual revenue expectations. Among the manufacturing companies surveyed, more than 80% said that there was a slowdown or reduction in production.

Due to the recent obstruction of local supply chains, yesterday, the State Council issued a document prohibiting unauthorized blocking or closing of expressways, ordinary roads, navigation channels and ship locks. See below for details:

The State Council should issue a notice on New Coronavirus's infectious disease prevention and control mechanism to ensure that freight transport logistics is ensured. The notice states that it is strictly prohibited to block or close the ship locks of expressways, ordinary roads and channels without authorization. It is not allowed to shut down the expressway service area, port terminals, railway stations and airports without authorization, or stop the crew change of ships on international navigation without authorization.

After the transportation obstruction is alleviated, the downstream production is expected to resume. At the same time, the export orders will increase, and the actual market of silicone is expected to recover substantially.

CPI rose 1.1% year-on-year in the first quarter and is expected to rise moderately throughout the year: according to the data released by the National Bureau of Statistics yesterday, the year-on-year increase of the national consumer price index (CPI) expanded in March, and the year-on-year increase of the industrial producer price index (PPI) continued to fall. Experts interviewed by covid-19 said that the rise of CPI was mainly due to the short-term disturbance of the new crown pneumonia epidemic and the common result of the international commodity price transmission effect. The downward pressure on prices is also reflected in the upward pressure. Looking forward to the later stage, it is expected that the CPI of the whole year will remain moderate, and the PPI of the second quarter may still grow positively month on month.

The cost reduction and burden reduction policy has been implemented quickly and frequently: from the "red envelope" of tax reduction and fee reduction to the account of market subjects, to the financial expansion and volume increase to support the real economy, and then to the frequent practical measures to make profits such as rent free and electricity fee reduction... Recently, the central and local governments have deployed one after another to exchange the "tight day" of the government for the "good day" of the people. A package of cost reduction and burden reduction measures have been intensively released, and the policy to relieve the difficulties of market subjects has been strengthened. Experts believe that the positive effects of these measures are expected to be reflected in the operation of enterprises in March and the second quarter. It is suggested that government departments take further measures to help stabilize or reduce the price of raw materials, and enterprises themselves also need to take the initiative to enhance their ability to resolve cost pressure.