Three factors benefit the downstream printing and dyeing industry
Recently, affected by the “Double Eleven” and the Spring Festival, the fabric industry has become very lively. Speaking of the scene of natural cotton bursting out of stock, I believe everyone still remembers the grand occasion of Jiangsu and Zhejiang’s printing and dyeing industry at the beginning of the year. Now that the “Golden Nine and Silver Ten” have passed, the booming business situation of printing and dyeing enterprises has appeared again. However, this time it is not only due to capacity constraints, but also due to cost. Driven by multiple factors such as demand and cost, there has been a new round of price increases in the printing and dyeing industry recently.
Costs and demand are rising, and dyeing factory inventories are piling up. As traditional sales seasons, “Double Eleven” and “Spring Festival” are annual events for downstream workwear companies, which requires fabric companies to advance in advance. Place an order. But before this year’s “G20″ Hangzhou Summit, many local printing and dyeing companies were shut down. Therefore, Double Eleven orders have not been fully digested, and printing and dyeing companies are ushering in the Spring Festival market. At the same time, the steam required by printing and dyeing enterprises is supplied through coal-fired boilers or thermal power enterprises. The skyrocketing price of coal has directly affected the cost of steam used by thermal power companies and printing and dyeing companies. Therefore, fabric merchants are worried that printing and dyeing companies will raise prices and place orders in advance. The concerns of fabric merchants were also confirmed by the reporter from Hangmin Shares. Li Junxiao, secretary of the company’s board of directors, admitted to reporters, “In recent times, the continuous rise in coal prices has really put pressure on the company’s operations. However, the company has not made adjustments to dyeing fees recently, mainly based on two points. One is the relationship between supply and demand. The second is the affordability of downstream customers.” It is understood that since late October, some printing and dyeing companies in Jiangsu, Fujian, and even northern Zhejiang, which are also major fabric printing and dyeing provinces, have cited rising coal prices and increased dyeing auxiliary costs as reasons , a round of dyeing fee price increases is taking place, with a range of 200-1,000 yuan/ton. Take Fujian Huamao Weaving and Dyeing Company, which raised prices on October 31, as an example. The company informed that due to the recent sharp increase in coal and fuel costs, the company has decided to increase the dyeing fees of all varieties by 200 yuan/ton starting from November 1. “In recent times, the delivery time of printing and dyeing companies in Xiaoshan and Shaoxing has been tight. It is estimated that it is related to the centralized order placement by downstream fabric companies.” Mr. Yu mentioned above said that recently, printing and dyeing has occurred in Wujiang, Jiangsu and Shishi, Fujian, which are also printing and dyeing centers. Companies banded together to raise prices. Shaoxing fabric merchants are worried that dyeing fees will rise, so they will naturally place orders in advance. Due to environmental restrictions, some dyeing factories were shut down at the end of this year. At the beginning of this year, the Zhejiang Provincial Economic and Information Commission conducted a province-wide survey and identified a total of 472 companies that qualified as “zombie companies.” Among them, 102 companies received government subsidies. , 332 companies have bank loans, but the average capacity utilization rate in 2015 was only 27.08%.
Not long ago, Zhejiang Province announced the elimination list of backward production lines or production equipment of 184 companies, covering steelmaking, papermaking, tanning, printing and dyeing, chemical fibers, medical chemicals, metal smelting, casting, and steel rolling. The backward and excess production capacity in 11 industries including weaving, weaving and sintered bricks will be completely eliminated by the end of November this year. This time, affected by multiple factors such as increased industry costs, reduced production capacity in the industry, and surge in downstream demand, printing and dyeing factories have formed a lot of inventory. Under the new normal, the dye industry will face a lot of pressure and difficulties in the future. The rise of the fabric workwear industry in Southeast Asia has brought considerable impact to my country’s dye industry. The industry economy faces many difficulties and challenges, but the dye industry has sufficient development potential, coupled with the industry’s improved capabilities in technological innovation, governance, and going global, providing good conditions for the industry’s continued growth. In addition, as people’s living standards improve, domestic demand for fabrics will further increase.
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