Shortage of Fireworks is a Foregone Conclusion
It is predicted that the fireworks industry will face a shortage of products this year, mainly due to the following reasons:
1. The production time is short. Due to the 20th National Congress of CPC, all fireworks factories are currently in shutdown. After it, the remaining production time in the second half of the year is only 84 days. If special circumstancesoccur,such asCOVID-19prevention, the production time will be further reduced.
2. Weather reasons.According to the forecast, fireworks production areas will remain dry with little rain, or affect the production of powder production line, that is to implement a half-day production policy, to ensure safety. This may directly leads to a sharp decline in fireworks production.
3. Shortage of raw materials. At present, 2 of core raw materials for fireworks production, single-basic powder and ammonium perchlorate, are still in shortage, leading to a sharp decrease in production and soaring prices of related products. This situation may not be improved before the New Year.
4.China's domestic market is booming. According to statistics, the current domestic fireworks orders have increased sharply. Due to the limited overall production capacity in the production area, it may affect the delivery of some international orders.