Dye Costs Accounted For 45%, Printing And Dyeing "Robbery" Is Coming Soon.

Every year, "gold, three silver four" is a busy day for printing and dyeing factories to make money. But since the "3.21" incident in Xiangshui, the entire dyestuff and printing and dyeing enterprises are no longer "calm".

Recently, the Shaoxing Keqiao District printing and dyeing industry association's "proposal to boycott the behavior of abnormal rising prices of dyestuffs and chemicals" has been stirred up by thousands of waves, causing many domestic printing and dyeing enterprises to respond in succession.

In March 21st, as one of the three major core factories of dye intermediates, two benzene, three amine, the supply of benzene amine two was in short supply after the explosion occurred in the Yancheng jiayugang Tian Jiayi chemical plant.

The price of benzene, two amine, which had been tight, rose rapidly. The price rose from 45 thousand / ton to 140 thousand yuan / ton in just two weeks.

It was not long before, in March 25th, a fire accident occurred in Zhaoyuan chemical industry in Shandong. In March 31st, the Han Ding precision explosion occurred in Kunshan. In April 15th, Qilu Tian and Hui Shi Pharmaceutical Co., Ltd. (some of its products were the main intermediate of HIC) had an accident; in April 21st, an explosion occurred at a chemical plant in Dalian, and a fire occurred in a sour intermediate plant in India.

Successive emergencies, while causing serious social impact, have added fuel to the flames of the previously rising dye market.

Disperse and reactive dyestuffs are rising while the other dyes are rising together.

In order to further concentrate on chemical industrial parks and chemical enterprises, in April 1st, the general office of the Jiangsu provincial government issued the "Jiangsu chemical industry upgrading plan (Draft)".

The draft pointed out that by the end of 2020, the number of chemical production enterprises in the province had reduced to 2000, and by 2022, the number of chemical production enterprises in the province was no more than 1000.

The 50 chemical industrial parks in the province will be reduced to about 20.

At present, there are 53 chemical industrial parks (concentrated areas) in Jiangsu province with more than 4500 Chemical Enterprises above designated size.

As the first big province of chemical industry, it seems that Jiangsu will really usher in the "most stringent" special rectification in history.

Under heavy pressure, in April 5th, Yancheng City, Jiangsu announced the complete closure of Xiangshui Chemical Industrial Park, supporting the construction of "no chemical district" in all regions.

Affected by the Xiangshui incident, at present, more than ten dye enterprises such as Wu Zhong, Chen dyestuff and Huasheng Chemical Company in Jiangsu have been shut down.

"Jiangsu's consolidation efforts are quite big and a bit of a chemical trend. Of course, after the Xiangshui incident, this is something we all want."

Insiders pointed out that in this draft, in addition to the number of enterprises has been limited, in fact, time is also very urgent, that is, two or three years later.

Such a time constraint has made many chemical companies unprepared, which will change the supply and demand pattern of the entire dyestuff industry and further strengthen the oligopoly.

Take disperse dyes as an example. At present, Zhejiang's Longsheng, rouge shares and Jihua Group have 130 thousand, 110 thousand and 100 thousand tons of disperse dyes, accounting for more than 60% of the total capacity.

"With the continuous tightening of the national environmental policy, a large number of unqualified SMEs will be eliminated in the future. The supply and demand of dyestuff and intermediates industry will be even more unbalanced, and the industrial concentration will once again be closer to the leading enterprises.

At present, the cost of dye production is greatly influenced by the price of upstream intermediates, and the selling price is greatly influenced by downstream demand.

Raw materials account for more than 70% of the cost of dye production, and intermediates occupy most of them. This is the main reason for the rising price of dyes. "

Faced with the soaring price of dyes, the head of intercontinental shares said that dye was also "forced" to raise prices.

Such as disperse blue ANT intermediate six bromine and intermediate reduction amount accounted for 27%, while raw material cost accounted for 81%; for active black KNB, intermediate pairs of ester and intermediate acid 58%, raw material costs accounted for 98%.

This year coincides with the founding of 70th anniversary. Green environmental protection and safety in production must be the trend of the times.

In this regard, Guosheng securities predicts that a new round of "inspection of safety" will be launched in the near future, and the chemical industry will usher in a new round of supply side contraction.

And this seems to be from the recent fourth batch of central environmental protection inspectors 8 provinces (districts) publicly handed over cases, accountability 1035 people's situation, also can be seen.

"There is no way out. Last year, natural gas increased by 30%, coupled with the increase in the price of dyes, and other comprehensive costs are also rising, the profit space has been constantly compressed, it can not afford to lose."

The owner of a printing and dyeing enterprise in Shaoxing said frankly, "in less than 1 months, the cost of dyestuff in the production cost of the enterprise has risen to 45%. How can we start?"

Generally speaking, the cost of dyeing and finishing accounts for about 25% of the printing and dyeing cost, which is a normal operation. Now the dye price is out of control.

That's the case. In April 17th, the printing and dyeing industry association of Keqiao, Shaoxing, Zhejiang issued the proposal to jointly resist the abnormal rise in prices of dyestuffs and chemicals.

The proposal put forward that a small number of dyeing and chemical production enterprises after the Xiangshui incident, did not normally raise the price of dyes and chemicals seriously, disrupted the normal production order of printing and dyeing enterprises, and called on producers and operators of the printing and dyeing industry in Keqiao to boycott the abnormal rising behavior of dyes and chemicals.

In response, many printing and dyeing enterprises have correspondingly indicated that "seriously endangering the normal operation of the printing and dyeing industry".

As a matter of fact, as early as March 23rd, printing and dyeing enterprises in Hangzhou, Fujian, Guangdong and other places have already raised their dyeing fees to cope with the rising of dyes.

In April 8th, the printing and dyeing giant civil aviation and dyeing and finishing Co., Ltd. once again raised the price of knitted fabric dyeing, which is the second time since March 23rd.

The sharp rise in dye prices is the reason for the rise of the shares.

"At present, it is also in the traditional production peak season of printing and dyeing industry.

Compared with the past, the price of disperse dyes has increased a little, or even doubled this year.

Civil aviation shares said.

Data show that in 2018, the cost of financing, employment, taxation and environmental protection continued to grow, and the price of dyes and chemicals increased.

In particular, the price of dye intermediate has been at a high level, pushing up the price of dyes. The price of disperse dyes and major dyes has increased by 70% to 80%. The price of reactive dyes has increased by 40% to 50%. However, the printing and dyeing processing fees are difficult to synchronize and enhance the operational pressure of printing and dyeing enterprises.

In 2018, 1715 major scale printing and dyeing enterprises achieved 283 billion 313 million yuan in main business revenue, an increase of 2.98% over the same period last year. The growth rate dropped by 3.58 percentage points compared with that in 2017. The number of households with loss making businesses was 303, with a loss of 17.67%, an increase of 3.81 percentage points over 2017.

It can be seen that the soaring price of dye has brought a great crisis to the normal production of downstream printing and dyeing enterprises.

"Our dyeing fees have not gone up. We hope to retain more customers with price advantage."

A printing and dyeing company is responsible for humanitarianism.

"If the dye up fee is low, the downstream enterprises are also afraid to accept it. The dye factory card is really in a dilemma."

"Recently, the dispersed black ECT300% rose rapidly to 70 yuan / kg; the H acid reductant was not available; the benzyl amine two was 200 thousand / ton immediately.

Other dyes are also soaring, which is a bit out of line.

This year, all the printing and dyeing enterprises are afraid to work for the Dyestuff Factory, which will be the current situation and sadness of the entire printing and dyeing industry.

Recently, the head of a printing and dyeing enterprise in Keqiao expressed dissatisfaction, and was affected by the Xiangshui incident. Now, the two benzamide producers in Zhejiang Longsheng are the only ones. I am afraid that the situation of dyestuff oligopoly is becoming more and more serious.

As for the rising of dye, in the recent dye exhibition held in 2019, Zhejiang Longsheng official said, the dye enterprises are facing the concentration of intermediates, and the pricing of the dye has been following the market rule, which is decided by the upstream and downstream supply and demand.

"As far as the current situation is concerned, the dye will definitely increase in the future."

Nowadays, the dyestuff situation is more and more invisible.

In April 23rd, tens of thousands of tons of dyes and intermediates in Jiangsu were announced to suspend production temporarily. The overhaul plan originally scheduled for 2019 6-8 was advanced to April 2019.

Some experts said that this will undoubtedly push dye prices continue to rise.

At present, the country can consume nearly 40 thousand tons of disperse dyes per month, and the main production areas are concentrated in Zhejiang, Jiangsu and Shandong.

This year, a series of safety incidents led to the closure of Jiangsu's Northern Jiangsu Province, 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. The production of disperse dyes in Shandong was delayed and the production capacity was limited. Only some enterprises such as annuqi were in normal production, and the decentralized dye enterprises in Shangyu, Shaoxing and Xiaoshan in Zhejiang also took the initiative to reduce production capacity due to safety inspections.

New enterprises are hard to get approval now, and even if they are approved for 1-2 years, they will not be able to create new capacity.

"At present, the surge of dyes is caused by a decrease in production capacity and an imbalance between supply and demand.

In view of the current production situation of disperse dyes and their intermediates in China, the situation of supply shortage in the second half of this year is likely to intensify.

In particular, the inventory rate of printing and dyeing enterprises, middlemen and so on has been very low since the beginning of the year. The rigid demand in the next 3-5 months will begin to push up product prices directly.

Expert analysis shows that in addition, by the safety law enforcement inspection, the intermediates of all regions also stop production and limit production. The prices of disperse dyes such as hexachloride, six bromine, two chlorine, 2 bromine, reducing products and cyanide are all substantially increased, while safety rectification also requires a lot of input, which is also the most important factor.

"The supply of a small amount of dye intermediates is affected, which actually has little effect on printing and dyeing enterprises. This is a small number of dyeing and chemical producing enterprises that have risen sharply and severely with the price of dyes and chemicals in Xiangshui."

In this regard, many printing and dyeing enterprises are still questioning the soaring price of dyes at present, so they have joined together to boycott the behavior of abnormal prices of dyes and chemicals.

It can be seen from the proposal issued by the Keqiao printing and dyeing association that they generally believe that the current surge of dyes is the combination of dye producers and sales intermediaries to raise the price of dyes and chemicals; the accumulation of dyestuff products, the shortage of human resources, the dissemination of false information outside, and the shortage of supply of dyes and chemicals.

However, there are also insiders pointed out that although many of the printing and dyeing enterprises in the country boycotted, it also resulted in a collective decline in the stock market of the dye listed companies, and even evaporated the market value of more than 10 billion a day, but the boycott was afraid of "thunder and heavy rain."

Take Keqiao as an example, as early as 2013, 2014 and 2017, the Keqiao printing and dyeing industry association has repeatedly called for a boycott of the upstream dye enterprises' behavior of price increase, and even the Zhejiang Price Bureau has specifically interviewed several dyeing enterprises such as Zhejiang Longsheng, asking for reasonable pricing, but it has received little effect in the end.

Faced with uncertain market demand, industry experts said that regardless of the future trend of dye prices, printing and dyeing enterprises should always be cautious when purchasing dyes.

When printing and dyeing industry purchases dyes, it should reduce the risk of dye price fluctuation in a small batch and multiple batches. It can also adopt the "sales quota" mode, that is, to determine the quantity of purchases according to the needs of short-term production.

In addition, because of the increasing speed of communication, logistics and trading, if the dye quantity is small, it can usually be placed in the morning and arrive the next day, and normal production will not be affected.

"At present, printing and dyeing includes the most important innovation in the textile industry of downstream enterprises, which is to accelerate pformation and upgrading, followed by tug of heating, especially printing and dyeing enterprises to intensify development and enter the industrial park to cope with the pressure of environmental protection."

The head of the China printing and dyeing industry association pointed out that the manufacturers of disperse dyes are mainly in China. In the short term, they can not rely on imports to solve the market supply of disperse dyes in China. The printing and dyeing enterprises are best prepared according to the inventory level and demand level, so as to avoid more pressure.

Therefore, in the face of rising production costs, printing and dyeing enterprises first strengthen technological innovation and break through the key technology of the industry.

We should focus on developing high quality printing and dyeing products design and manufacturing technology, including functional textile dyeing and finishing technology, multi-component textile dyeing and finishing technology, high color fastness textile dyeing and finishing technology, new fiber dyeing and finishing technology, providing technical basis for developing high quality, multi-functional, differentiated and high value-added products, and developing textile fabrics into comfort, fashion, environmental protection, diversification, multi-function and intelligentization, so as to enhance the core competitiveness of products.

Such as supercritical CO2 dyeing technology, foam dyeing technology, reactive dyes salt free dyeing key technology, ecological dyeing and finishing technology, biological enzyme dyeing and finishing technology and so on.

Secondly, we should accelerate the adjustment of product and market structure so as to pform from quantity to quality.

Printing and dyeing enterprises should constantly improve the proportion of high quality products, so as to enhance the added value of products and create new competitive advantages.

Such as Shengze morning dragon Xinsheng Textile Co., Ltd. has spent a year researching and developing the "cotton elastic yarn dyed fabric". Its handle is better than cotton fabric. It also has antibacterial, deodorant, hygroscopic and sweating functions. It sells at 20 yuan per meter, 3 times the conventional product, and becomes the "explosive payment" of exports.

In addition, we need to push forward lean management, do well the basic management of 5S, such as site management, quality management system and standardization, and actively explore new ways to improve quality, reduce costs and increase efficiency.

At the same time, we should improve the level of information and intelligent management, and promote the integration of Internet, big data, cloud computing and Internet of things in the printing and dyeing industry. We should speed up the application of ERP, MES, PLM, SCM, CRM and other management information systems, and create intelligent printing and dyeing factories in the whole process to ease the cost of dyeing and chemical materials and labor costs.

For example, since 2015, nearly 12 million yuan has been invested in the automatic measuring and conveying system of dye auxiliaries in South Korea. At present, the workshop has fully realized the automatic distribution of pretreatment auxiliaries, dyeing auxiliaries and stereotypes auxiliaries. Semi automatic distribution of dyes has greatly reduced the consumption of dyes and chemicals, reduced the cost, and saved more than 10% of dye auxiliaries annually.

In recent years, environmental protection has always been a sharp sword hanging on the head of enterprises. It seems to be the "fuse" of the rising price of dye at present, which will bring certain influence to the healthy development of downstream enterprises.

But in the long run, temporary pain is forcing enterprises to speed up pformation and upgrading. In particular, the printing and dyeing enterprises should closely develop high-quality products, focus on the new label of "technology, fashion and green" industry, do a good job in environmental protection and safety production, make innovations and speed up intensive and intelligent development.

Because printing and dyeing is an important part of China's intelligent manufacturing and Chinese textile industry, keeping printing and dyeing is keeping the wisdom of China's textile industry, keeping the lifeblood of the industry, and keeping the future of industrial development.

It is expected that in the near future, the state will also introduce corresponding standards and norms to create a good ecological environment for the healthy development of the industry and the normal production of enterprises, and guide the sustainable development of the industry and enterprises.