The Mask-Making Bubble, Burst | Ifeng News “Face”
Chen Jiani, Chen Jin—Ifeng News
When demand for medical-grade masks ramped up this Spring, thousands of speculative manufacturers and traders pivoted to the melt-blown fabric sector, an essential material for the masks, hoping to capitalize on the face mask bonanza. The market quickly became oversaturated, driving prices down and making inferior-quality products obsolete. Two factory owners from Zhejiang province, identified as Ms. Jin and Ms. Wang, separately claim to have invested 800,000 renminbi and 4.5 million renminbi, respectively, in melt-blown fabric production, only to be left with worthless fabric and equipment. After failed negotiations, Ms. Jin decided to sue her supplier while Ms. Wang continued to cold-call business contacts in desperation.
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When demand for medical-grade masks ramped up this Spring, thousands of speculative manufacturers and traders pivoted to the melt-blown fabric sector, an essential material for the masks, hoping to capitalize on the face mask bonanza. The market quickly became oversaturated, driving prices down and making inferior-quality products obsolete. Two factory owners from Zhejiang province, identified as Ms. Jin and Ms. Wang, separately claim to have invested 800,000 renminbi and 4.5 million renminbi, respectively, in melt-blown fabric production, only to be left with worthless fabric and equipment. After failed negotiations, Ms. Jin decided to sue her supplier while Ms. Wang continued to cold-call business contacts in desperation.