It’s early June, and the traditional off-season is on the agenda. In order to explore the current situation of dyeing factories, the editor specially interviewed some people in the industry.
They said that due to the lack of order continuity, some dyeing factories have seen a significant shrinkage in their warehouse purchases, and it has become common for small dyeing factories to stop cylinders. Some dyeing factories have even adopted price-for-volume methods in order to attract large orders…
Let’s take a look at the specific situation.
Insufficient order volume, some positions in the dyeing factory are on rotation
From the perspective of market performance, in the first quarter, the trends of dyeing factories and the textile market ran counter to each other. Some textile people joked that the current market situation is “if you ask me, the market conditions are average, but if you look at the dyeing factories, they are all liquidated.” Data show that the production situation of dyeing factories has improved significantly at that time. In March, the output of printed and dyed fabrics by printing and dyeing enterprises above designated size was 5.826 billion meters, a year-on-year increase of 11.37%.
However, as the traditional off-season of the textile market approaches, the dyeing factory market has gradually returned to normal. As early as mid-May, a salesperson from a dyeing factory revealed to the editor that although the factory’s production lines are still operating at full capacity, there are already signs of sluggish orders. (Weaving companies: suspending production and taking holidays! Dyeing factories: Wait, I can’t hold on anymore!)
“Our factory has started to stop cylinders, about 10 of them have been stopped. Customers are ordering less color, and the quantity is not very large. Some people in certain positions have begun to take turns to take vacations.” said the salesperson of the dyeing factory.
For this dyeing factory, the cylinder shutdown caused the original 100% operating rate to fall back to around 90%. Looking at the market, this operating rate value is still far higher than the industry average. However, even dyeing factories of reasonable scale have experienced cylinder shutdowns. The plight of small dyeing factories can be imagined.
It is understood that the current orders of many printing and dyeing companies are relatively scattered and lack the support of large orders. Some dyeing factories have uneven production. In order to maintain normal production operations, these dyeing factories either choose to concentrate on production every week, or use methods to reduce dyeing costs to attract large orders.
From this point of view, when the continuity of orders cannot be guaranteed, the operating rate of printing and dyeing companies may become increasingly difficult to maintain.
Revenue declines, industry losses remain high
Of course, it is not just orders that trouble printing and dyeing companies. The pressure brought by revenue cannot be underestimated.
According to data from the National Bureau of Statistics, in the first quarter, the operating income of printing and dyeing enterprises above designated size was 65.336 billion yuan, a year-on-year decrease of 4.18%; the total profit was 1.193 billion yuan, a year-on-year decrease of 36.67%; the number of 1,732 printing and dyeing enterprises above designated size was 787, with losses The total loss of loss-making enterprises was 1.461 billion yuan, a year-on-year increase of 44.13%.
Through the data, it is not difficult to find that the main economic efficiency indicators of the printing and dyeing industry continue to decline, the pressure on industry profitability is still prominent, and the industry’s losses are still at a high level.
In recent years, against the background of rising prices of natural gas, electricity, steam and other energy sources, the printing and dyeing industry has been under greater pressure on the cost side. The rising costs have significantly squeezed the profit margins of printing and dyeing companies, resulting in a year-on-year decline in gross profit margins, which directly affects the company’s revenue capabilities.
Once the orders of printing and dyeing enterprises are not enough to maintain production operations and are forced to reduce the startup, production capacity will not be effectively used. At that time, costs will be difficult to transmit to the downstream. The profit margins of printing and dyeing enterprises that absorb cost pressure alone can only continue to erode and suffer losses. It’s only a matter of time.
The printing and dyeing companies mentioned above that adopt measures such as “concentrated casting of blanks” and “job rotation” are actually to reduce operating costs more effectively. They hope to gain more breathing space and space for the companies during the off-season. time.
Polarization is the most realistic portrayal of today’s textile industry. It is understood that there is a shortage of orders in the printing and dyeing industry, and there are also printing and dyeing companies that need to line up to enter the warehouse. Let us wait and see what changes will occur in printing and dyeing companies in the next 2-3 months.
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