How Did The Printing And Dyeing Industry Suffer From "Cold Spring" Enterprises Resuming Work?

After the Spring Festival last year, it is the traditional peak season for printing and dyeing industry, but this year, Li Hua (a pseudonym) is not happy.

"Now my capital operation is very difficult to insist on for a long time, we can only take a look at it one step at a time." As a responsible person of Changyi Yuan Hong Textile Co., Ltd., Li Hua told reporters that due to the reduction of orders, making the cost increase, the company has been in a state of loss and capital operation is difficult.

Li Hua's experience is not isolated. A number of printing and dyeing enterprises told reporters that the industry is now gradually orderly return to production. However, domestic orders demand transactions are sluggish, and now the main production is foreign orders.

However, some people in the industry believe that the domestic dye production capacity accounts for about 2/3 of the world. Even if the domestic printing and dyeing enterprises do not produce, foreign countries also have to produce, and the dye will still be imported from China. Therefore, the overall impact of the epidemic on the dyestuff industry is relatively low.

Reduction of orders after resumption

Although the impact of the epidemic is still continuing, the upstream and downstream enterprises of the printing and dyeing industry chain are gradually resuming production and resuming production.

Since February 13th, the China Federation of textile industry has established the "daily system of resuming enterprises and resuming production". The Chinese printing and dyeing industry association has launched a wide range of member enterprises to fill out questionnaires to track the situation of resumption and resumption of enterprises. As of 12 February 29th, a total of 127 valid questionnaires were received.

According to the statistics of the printing and dyeing Association, 87.40% of the 127 printing and dyeing enterprises and related enterprises involved in the survey have gradually resumed their work, of which 111 have responded to the current situation of the arrival of the workers, and the number of posts is 110877, accounting for 72.50% of the total number of employed workers under normal conditions.

Due to the impact of the epidemic, the major textile cluster markets and textile factories had to postpone the resumption and opening of the market, resulting in the textile related industry chain being affected. Among them, the printing and dyeing industry in the traditional peak season production time or will be squeezed, and so on after the resumption of work, such as the reduction of orders, the lack of operating rate and so on.

According to the insiders, the printing and dyeing industry has a clear and bright season. Generally speaking, after the Spring Festival, it is the most prosperous season. Before the Dragon Boat Festival, factories basically have no orders to do. After the Spring Festival, printing and dyeing enterprises are the best production time, but the downstream garment industry is sluggish, orders will be reduced or even serious loss.

Weifang Huabao Textile Co., Ltd., the person in charge told reporters that the enterprises now mainly produce some orders from abroad last year, but domestic orders are not available now.

"Affected by the epidemic, we reduce the number of people going out, and the sales of the clothing industry at the terminal are frustrated. If there is no demand, the product will not sell." Li Hua told reporters.

Reporters noted that affected by the epidemic, the clothing industry "perfect missed" the golden week of the Spring Festival.

According to Dagong international analysis, the outbreak is in the peak season of clothing sales on the eve of the Spring Festival. The inventory of pre production can not be released in the short term. It is expected that the sales of garment enterprises will decline year by year. In addition, the storage cost caused by inventory in the short term will have a negative impact on the profitability of textile and garment enterprises, and at the present stage, the sales of stock products will slow down, and the clothing sales will be unsalable in the short term. The clothing and textile enterprises are facing a risk of impairment, and profits will decline further.

In addition, the sale of offline stores is expected to decline in the short term. The substitution effect of online sales is obvious, but the overall situation is not very optimistic. With the gradual control of the epidemic, the offline sales will also gradually recover. The export side is affected by the downtime. It is expected that the order will not be completed in the short term, and is expected to improve after resuming work. However, the new order will decline.

Hong Qian, a researcher at the Research Institute, said in an interview with reporters that the impact of the dyestuff industry is gradually emerging. Because in addition to being affected by the epidemic, dye intermediates manufacturers and dye dealers delayed the resumption of work, resulting in some printing and dyeing enterprises can not resume production in a short time.

Hong believes that the development of downstream garment industry is deeply influenced by upstream printing and dyeing enterprises. Due to the varying degrees of delay in the resumption of industry in the upstream and downstream industries, it can be predicted that this will have an adverse impact on the downstream garment industry.

"After the resumption of work, no orders, the impact on the enterprise will run through the first quarter." Li Hua told reporters that after our factory resumed, 300 of the employees were basically in position. Although the order was only 1/4 of the previous year, their wages would be paid normally. In addition to the operating cost of the entire plant, the monthly loss is very large. It said, "now my capital operation is very difficult to insist on for too long, I can only take a look at it one step at a time."

Li Hua said, like this, there are a few enterprises that are facing the same problem. The reduction of orders can actually make some employees do not work, but they can not do so. Employees' lives also need to be considered. If employees are not paid, the next market demand will be gone.

In view of the difficulties encountered at present, Li Hua hoped that the government departments could appropriately reduce part of the tax revenue in the first quarter according to the realities of the resumed enterprises, and also hoped that the bank loans could be appropriately delegated to ease the problem of corporate financing.

Dye plate

In the textile printing and dyeing industry, dye plates are in the upper reaches, and printing and dyeing are in the middle and lower reaches.

At the beginning of March, with the advent of the resumption of labor recovery, some disperse dyes dealers began to adjust prices.

Public information shows that the price of the important intermediate of disperse dyes (2- amino -4- acetaminophen) has risen from 40 thousand yuan / ton to 100 thousand yuan / ton, or more than 150%. According to statistics, last week, the black ECT 300% was quoted at 30000 yuan / ton, up 1000 yuan / ton compared with the previous week, or 3.5%, and the active black WNN200% price was 23500 yuan / ton, up 1000 yuan / ton, or 4.4%, compared with the previous week.

Huachang Securities pointed out that downstream printing and dyeing enterprises resumed work after the festival. As the resumption of work continues, the intention of replenishment is increasing. However, logistics transportation is still subject to certain restrictions, and spot supply in some areas is relatively tight. Meanwhile, affected by the delayed start, the export dye orders are backlog. At present, the price of disperse dye manufacturers begins to be tentatively increased. Cost push up the release of superimposed demand, it is expected that the price of disperse dyes will continue to rise, and the leading company of its own intermediate capacity production chain is expected to benefit.

Previously, according to the seven cloud platform (China printing and dyeing industry association and China Dyestuff Industry Association Co sponsored) research: in February 2020, affected by the new crown pneumonia epidemic situation, downstream printing and dyeing enterprises as a whole resumed and resumed production process slowly, and the demand for dyestuff market was relatively weak. The market price of disperse dyes has gone up slightly, and the total turnover is limited.

Reporters noted that the epidemic affected Zhejiang province is the largest production base of disperse dyes and reactive dyes in the world, and its disperse dye production accounts for about 80% of the total in the whole country. However, affected by the epidemic situation and downstream textile and garment industry, local Zhejiang's 600352.SH, 002440.SZ, Zhejiang Boao and other major domestic dyestuff production enterprises will lose their production capacity.

Hong Sheng analysis, Zhejiang Longsheng, run earth shares, Zhejiang Boao, Jihua Group, Flynn special domestic main disperse dye production enterprises are located in Zhejiang Province, mainly in Shaoxing Shangyu area and Hangzhou Xiaoshan area. The production of disperse dyes in Zhejiang is estimated to be around 80% in the whole country. In particular, due to the impact of the epidemic, for export oriented printing and dyeing enterprises, the failure to start on schedule is undoubtedly a heavy blow.

However, Zhejiang Longsheng people told reporters that due to the large scale of enterprises and the full preparation of resources, the project has already started, and it is only half a month late than the previous year's resumption plan. The impact of the epidemic on the company is still uncertain, mainly depending on the impact of the time of the epidemic on the whole economy. If the duration of the epidemic is relatively long, the consumption demand will decline, which will have an impact on the industry. On the other hand, if the outbreak is over, it may generate retaliatory consumption, which will be a good thing for the industry.

Another senior managing director of 300067.SZ, a dyestuff, said in an interview with reporters that the delay in the opening of the Trade Union resulted in a decrease in output and demand in the first quarter of the dyestuff industry. The total supply and total demand remained stable throughout the year.

Tension believes that the downstream terminal clothing industry transmission effect has not appeared. From dye to clothing, there is a transmission cycle in the industry. The general process is dyestuff dyeing plant textile company garment factory. The whole production process is about half a year.

Tension told reporters that the current impact of the epidemic on the clothing industry for the beginning of winter clothing and the current stage of the spring clothes to be listed, which will cause the apparel industry to generate a large number of stocks, these are actually produced in 2019, the dye has been used. In its view, the production of summer clothing is now affected, and if the epidemic is over in May, it will not be affected. At present, the preparation of the dyestuff industry is the source of this autumn clothing and winter clothing, so the transmission effect of the clothing industry is not very large.

Hong Hong told reporters that whether the capacity of printing and dyeing enterprises can be restored in the short term after the festival, whether production management or international logistics outage risks will occur after resuming work will all become the multiple considerations of foreign customers' orders, which may accelerate the transfer of orders.

Tension does not exclude the reduction of export orders in the domestic printing and dyeing industry, but the domestic dyestuff accounts for 2/3 of the world. Even if the domestic printing and dyeing enterprises do not produce, foreign countries also have to produce, and the dye is still imported from China. Therefore, overall, the epidemic situation has less impact on the dyestuff industry.