Printing And Dyeing Market Dynamics: Printing And Dyeing Association Boycott Price Increases, Jiangsu And Zhejiang Printing And Dyeing Enterprises Still Hold Up Fees

Shaoxing, which is located in Keqiao, is the most gathering place of China's printing and dyeing industry. Hundreds of printing and dyeing enterprises have been set up. Printing and dyeing capacity accounts for about 1/2 of Zhejiang's total, accounting for more than 1/3 of the total.

Therefore, "dye vat" has also become the pronoun of Shaoxing.

According to understanding, before, because printing and dyeing enterprises generally not optimistic about this year's industry, so the enterprise's dye preparation is generally not high.

However, the explosion of Xiangshui almost changed the trend of the industry.

Even though the incident has passed for nearly a month, the shock wave is still spreading.

Disperse black ECT300% is the most representative product of dyestuff industry.

Xiaobian learned that at present, the price of dispersed black ECT300% rose from 47 yuan / kg before the explosion to the latest price of 70 yuan / kg.

At the beginning of April this year, when the quoted price of disperse black ECT300% was 60 yuan / kg, the field of dye and printing and dyeing industry in Shaoxing was visited in depth.

At that time, a number of dealers said that the price of dye has gone up unprecedentedly this year, and many printing and dyeing enterprises are regrets that the cost is rising too fast.

A boycott proposal has evaporated over 10 billion market capitalization a day.

Recently, a paper on printing and dyeing industry association of Keqiao District of Shaoxing Municipality on "boycotting the behavior of abnormal rising prices of dyestuffs and chemicals" has been put into the spotlight again.

The proposal points out that since the end of March this year, the cost of dyestuff and material in Keqiao has increased from 25% of the total processing cost to over 45% in the short period of 1 months, which has seriously affected the normal production and operation of the printing and dyeing enterprises, and also endanger the sustainable development of enterprises.

Affected by the proposal message, dye listed companies in April 19th were significantly weaker than the market, and the group fell after opening.

The two class market showed that as of April 19th, the three leading companies in the dyestuff industry, Zhejiang Longsheng (600352), fell 8.94%, and the shares of rinterland (002440) fell 4.29%, and the Kyrgyzstan group (603980) fell 4.7%.

In addition, enterprises such as anothem, Asia share, Haixiang pharmaceutical and so on also have different ranges of decline.

According to rough calculations, the listed companies of the dyes listed above have evaporated more than 10 billion market capitalization a day.

In recent years, the actual effect is very small, boycott behavior is afraid of "thunder and heavy rain and little rain".

In fact, when the cost of dye has risen sharply, the Keqiao printing and dyeing industry association has repeatedly called for a boycott of the upstream dye enterprises.

Related media also reported in 2013, 2014 and 2017.

In 2013, for example, in August of that year, the Shaoxing printing and dyeing industry association organized more than 200 printing and dyeing enterprises in Shaoxing, and jointly submitted a report on antitrust requirements to the Zhejiang price supervision and inspection sub Bureau, mainly aiming at the two major dye giants of A shares, Zhejiang Longsheng and run earth shares.

According to media reports, at that time, the Zhejiang Price Bureau interviewed several enterprises and printing and dyeing associations in Zhejiang, such as Longsheng, demanding reasonable pricing, but no evidence of monopoly was found.

It is learnt that in addition to the printing and dyeing industry, the dye industry is also a business card in Shaoxing.

Zhejiang Longsheng has the world's annual output of 300 thousand tons of dye production capacity and annual production capacity of about 100 thousand tons of auxiliaries, ranking first in the global market.

At the same time, Zhejiang Longsheng also has an intermediate capacity of 110 thousand tons per year, and the yield of benzene two amine and resorcinol ranks the highest in the world.

The total annual production capacity of intercontinental shares (002440) is nearly 190 thousand tons, and the market share of product sales occupies the top two of the domestic dye market share.

Is the collective boycott of Keqiao's printing and dyeing stopped, or is it necessary to follow the previous practice to further play it?

In April 19th, he contacted the Keqiao dyeing and printing industry association, but the relevant persons did not give any explanation on the basis of the meeting.

Rapid shrinkage of production capacity and rising dye demand

And the rise of dyes is sometimes inevitable, and subsequent price rises will continue.

1, substantial reduction in supply.

The main production areas of disperse dyes in China are concentrated in Zhejiang, Jiangsu and Shandong. A series of safety incidents led to the closure of Jiangsu's Northern Jiangsu, Shandong's limited production and Zhejiang's production reduction; only the production of disperse dye enterprises in Subei Chemical Industrial Park stopped production, resulting in a reduction of capacity of 150 thousand tons / year. Currently, the production of disperse dyes in Shandong is delayed and the capacity is limited.

Under the supervision of safety law enforcement, the intermediates of all parts of China have also stopped production and limited production. The supply of disperse dyes and their intermediates has been reduced, which has directly pushed up product prices.

2, demand is basically stable.

The annual demand for disperse dyes in China is basically stable. The second quarter is the peak season for printing and dyeing production. It is estimated that nearly 40 thousand tons of disperse dyes can be consumed in the whole country every month.

In view of the current domestic production of disperse dyes and their intermediates, according to authoritative sources in the industry, there may be a shortage of supply in the second half of the year.

The rigidity of demand and the reduction of supply will certainly push up the price of disperse dyes.

3, rising costs

It is reported that the price of intermediates has risen sharply, and most manufacturers have stopped taking orders.

Product prices are mainly affected by supply and demand, and the shortage of supply will push up the paction price.

In addition, a great deal of investment is needed in safety rectification. This increases the production cost of intermediates and dyestuffs to a certain extent, and the price of products also increases.

4. No new capacity is added

Most of the enterprises of disperse dyes and their intermediates have great pressure of safety and environmental protection. There is no schedule in the enterprises of Subei chemical industry park, and other enterprises are afraid to start production because of their concerns about environmental protection and safety.

New enterprises are also difficult to get approval, even if approved for 1-2 years, no new capacity can be formed.

In addition, the concentration of dispersed leading enterprises is further enhanced.

The printing and dyeing enterprises in Jiangsu and Zhejiang should embrace the crazed dyes collectively.

At present, besides the proposal, the printing and dyeing Market is constantly adjusting prices to deal with this crazy price increase.

Public information shows that since March 23rd, 5 printing and dyeing enterprises in Hangzhou have adjusted the cost of dyeing and finishing. In March 28th, 8 printing and dyeing enterprises in Shaoxing issued price notices. From the notice, we can see that the price of chemical dyes rose rapidly and the cost of dyestuffs increased rapidly. Since April 1st, the price of flat-panel products has increased by 300 yuan / ton, and the price of Spandex Products has increased by 400 yuan / ton.

In April 20th, the shipping and dyeing company issued a notice that the cost of dyestuffs doubled due to the chemical plant incident, especially the price of red dye was particularly large, causing the company's cost to rise. The company decided that the red color of scarlet, purple red, Mei Hong and bright red should be appropriately raised on the basis of the price table executed in April 20th from the end of March 26th, and the price list will be implemented according to April 22nd.

Since the issuance of a proposal for printing and dyeing industry association of Keqiao District, Shaoxing, 10 printing and dyeing enterprises in Zhejiang Ningbo have issued up fees, and 10 printing and dyeing enterprises have said that the cost of dyeing plants has increased rapidly due to the doubling of dyestuffs.

Since April 26th, black rose 800 yuan / ton, dark color rose 500 yuan / ton, medium light color, bleach, Ban Piao rose 300 yuan / ton.

In the notice, 10 printing and dyeing enterprises were stamped, and 1 seals were the dyeing and finishing branch of Xiangshan Knitting Industry Association.

Since 10 printing and dyeing enterprises in Xiangshan, Zhejiang, have jointly raised the dyeing and finishing processing fee, in April 20, 2019, the Changshou City printing and dyeing chamber issued a letter of recommendation to the member enterprises to increase the printing and dyeing processing fee. In the letter of recommendation, the Changshou City printing and dyeing chamber took into account the cost pressure of the printing and dyeing enterprises. After listening to the opinions of all parties, it suggested that the member enterprises should uniformly increase the dyeing and finishing processing fees from May 1, 2019, and the adjustment suggested that the Yuan Yuan should be raised by 1000 yuan / ton on the basis of the original dyeing and finishing processing fees.

More helpless than the printing and dyeing mill is the textile boss, and the profits will shrink again.

At the beginning of the new week, whether the dye producers or traders are constantly remarking the new adjustment of the dye price, or even powerless, in the circle of friends.

With the increase of raw materials, many printing and dyeing factories have no choice but to accept the price increase and pfer the cost to the lower reaches. The rising trend of subsequent dyeing is obvious. In the entire printing and dyeing industry chain, the textile mill is in an awkward position. Upstream dyes and printing and dyeing companies are in a concentrated position. Once there is any trouble, the dye companies take the opportunity to adjust the price of dyestuffs, and the printing and dyeing factories increase their prices.

Therefore, Xiaobian thinks that for printing and dyeing terminal, the printing and dyeing mill can still pfer the cost, but the profit of the textile boss in the sandwich will be greatly reduced.

(source: dyeing people, seven colored clouds, securities times, e company)