LONDON, United Kingdom – This week’s virus-related markets slump has hammered companies worldwide but some winners have emerged as an anxious public clamors for face masks, hand sanitizers, and cleaning products.
Thermal imaging cameras are also proving hot as authorities step up monitoring for high temperatures in airports and other public spaces in their quest to limit the spread of the new coronavirus.
Demand for masks globally is 100 times higher than normal, “driven by panic buying, stockpiling, and speculation,” World Health Organization spokeswoman Fadela Chaib told Agence France-Presse (AFP).
“CDC does not currently recommend the use of face masks to help prevent novel #coronavirus,” the United States Centers for Disease Control and Prevention tweeted this week.
“Take everyday preventive actions, like staying home when you are sick and washing hands with soap and water, to help slow the spread of respiratory illness.”
Use of face masks has long been commonplace in Asia at the first sign of illness and has become ubiquitous amid the outbreak of COVID-19, which began in China two months ago. (READ: DIY virus protection: Hong Kongers making own masks amid shortages)
Demand is now surging in the West too as the virus spreads to more countries, infecting more than 83,000 people worldwide.
In France, the government has released 15 million masks from state stocks to reprovision pharmacies and hospitals, for use by both medics and “at risk” individuals.
The situation is complicated by restrictions imposed on exports from China, the leading producer of face masks, as the government keeps more back for domestic usage.
“We have a factory with 150 staff in China. Our protective equipment products can no longer be exported, with priority now given to the Chinese market,” David Guiho, marketing director for French company Delta Plus, told AFP.
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It was a bloody week for stock markets as indices endured their worst performance since the 2008 financial crisis, on fears that the virus could paralyze the global economy this year.
But among individual outliers was Clorox Company, whose New York share price reached record highs above $168.
“Clorox is clearly positioned for a short-term gain as everyone needs additional disinfectant,” William Susman, managing director at Threadstone Advisors, told Bloomberg News. “There could be a few winners.”
Clorox and other disinfectants such as Lysol and Dettol are advertised as killing nearly all bacteria and viruses.
Reckitt Benckiser Group, the British maker of Lysol and Dettol, said demand for its products has surged in China and beyond.
“Our people are working round the clock with consumers in mind,” Reckitt Benckiser chief executive Laxman Narasimhan said in an earnings call with analysts on Thursday, February 27.
However, the supply of hot-ticket items is not necessarily keeping up with demand. In London, a tour of several pharmacies found stocks of hand disinfectant all gone.
Online pharmacy Medino said demand for hand sanitizer had ballooned by more than 1,000% in February compared to previous months, with many customers stockpiling after the new virus appeared in Britain for the first time.
Some volume buyers are taking no chances.
The Federal Bureau of Investigation has ordered $40,000 worth of hand sanitizer and face masks in case the coronavirus turns into a pandemic in the United States, according to CNBC, even as President Donald Trump downplayed the outbreak.
The demand for thermal cameras comes despite the fact that, according to experts, they are no use in detecting people who have the virus but have yet to develop a fever.
One leading manufacturer, Irish company Satir Europe, said it normally received a handful of customer queries daily for its fever-screening cameras but its backlog of orders now stands in the hundreds.
“Some of them (clients) want 1,000 units, 2,000 units, especially from China,” it said, citing demand from airports as well as other transport operators and private companies. – Rappler.com