Japan's "Giant Earthquake" In Printing And Dyeing Industry! Dye Prices Rose 30%, Processing Fees Can Not Be Passed On!

In Japan, wholesale prices of dyes for fiber printing and dyeing are rising. The representative varieties for clothing increased by 3 to April, up 5~6% over the same period last year. There was an explosion in China's largest raw material producer in March. Local governments have strengthened inspections and factories around them have stopped functioning. Coupled with regulation based on environmental policies, China's supply has been reduced. Japan's dyeing and finishing enterprises are facing rising costs.

Prices rose by 3.

Judging from the representative dyes used for clothing, China accounts for nearly 7 of the world's output. The wholesale price of black dye as an indicator is 2200~2600 yen per kilogram. In May alone, it rose by 3, and then remained high.

The explosion was caused by a raw material factory in Yancheng City, Jiangsu province. It is reported that about 80 people died due to the blaze in the factory igniting boiler fuel natural gas. The factory was shut down after the accident. Yancheng City and neighboring Lianyungang started inspections, and factories around them stopped working. There is a view that measures need to be taken to prevent the recurrence of accidents should not be restarted until the end of the year.

The explosion factory had produced blue and red dye raw materials in three primary colors. A dyestuff enterprise said, "the blue and black dyestuffs made from blue are also obviously in short supply."

In addition to plain clothes, dyestuffs for work clothes rose by 3~5 compared with 2018. Some dyes even increased to 2.5 times. Dyes for automobiles and other interior materials also rose by 1~2 compared with 2018.

In China, the supply of dyes has been decreasing due to the impact of environmental policies. In April 2018, some factories of small and medium-sized enterprises were exposed to sewage discharge and were not up to standard. It is reported that the relevant departments have strengthened verification, and about 200 factories in Lianyungang's industrial parks have been closed down. After October, it started again, but because of the explosion, the supply decreased again.

The demand for dyes such as fiber has been strong worldwide. In 2017, the output of chemical fiber was 68 million tons, an increase of 15% over 2013. Although many view that China's economic slowdown is leading to a reduction in fabric production, the trend of low supply and high price of dyes is expected to continue for some time.

Processing fees cannot be spanferred.

Dyeing enterprises in Japan are beset by increased dye costs. People in the fiber field said, "procurement costs increased by 2% before the explosion in China." Komatsu MATERE, a large company, purchases color dyes for sportswear from China. The company is worried that the price will go up or rise in the future.

In China, dye enterprises take 6~7 company as the center to form monopoly. Globally, large enterprises have only 3~4 houses in Germany and Switzerland.

On the other hand, dyeing processing enterprises charge processing fees to fiber enterprises, process cloth and return products. In the face of fiber enterprises such as China's overseas owned foundries, the price bargaining power of dyeing and finishing enterprises is not strong enough to spanfer part of the cost increase to processing fees.

Factory of dyeing workers in Osaka (Osaka Prefecture)

Dyeing workers in Osaka were dyeing and processing camouflage suits for the Japanese self defense force. The company's chief executive said that the cost of other materials, including other materials, could only be spanferred to less than half. He also said that he would speed up the substitution of other categories for huge items, but "we must ensure that the color will not change".