Just now, a message that “some printing and dyeing factories in the north are temporarily on holiday” appeared in the editor’s field of vision.
The source said that as the beginning of winter approaches, the temperature in the north drops sharply, and the number of orders from printing and dyeing companies is as high as this temperature. After entering November, due to insufficient orders, some printing and dyeing companies in the north adopted a temporary holiday strategy, with the average holiday time being 3-5 days.
This traditional peak season has just passed a week, and it is difficult for printing and dyeing companies to maintain orders. Is winter coming soon?
If the upstream is not strong enough, how can the downstream be on its own?
Throughout the entire industrial chain, printing and dyeing is located at the downstream of the textile industry chain and is a necessary stage for the transmission of fabrics to clothing. Therefore, once a problem occurs in a certain link, how can the printing and dyeing industry be immune?
Preliminary research shows that from September to October, although the order situation in the textile industry showed signs of improvement, the continuity was not strong, and the overall performance was far less than expected. During the visit, most textile companies said that although actual orders have indeed arrived, most of them are “small batch, multi-batch” quick turnaround orders, and large-scale market prices have not appeared.
And this is consistent with the actual performance of printing and dyeing companies. According to feedback from a salesperson at a dyeing factory, their workshop is currently dominated by market orders, with a wide variety of products and generally small sizes. Although it is not yet time for a holiday, it is obvious that the order intake is weak and there is a tendency to take some time off.
Monitoring data from Silkdu.com shows that as of November 3, the operating rate of printing and dyeing companies in the sample was 71%, and the downward trend is relatively obvious. It is understood that the actual on-machine orders in most printing and dyeing workshops are mainly orders received in the early stage. Although inquiries have increased recently, there are not many actual orders placed, and the bidding and negotiation situation is still fierce.
The above-mentioned salesperson revealed that currently more than 30 cylinders have been stopped in the workshop, which is close to 1/3 of the total production capacity, and the number of warehouses is also decreasing day by day. At the same time, some positions have also begun to take turns. Due to the unsatisfactory performance of the textile market in the short term, the actual order volume does not match the production capacity of various printing and dyeing enterprises, and the uneven opening of machines is not an isolated case.
The first three quarter reports are released, and most of the net profits have declined.
Since the performance of orders is unsatisfactory, the revenue of printing and dyeing companies will inevitably be affected.
At the end of October, a printing and dyeing giant released its third quarter report. The report shows that in the first three quarters, the company achieved operating income of 10.829 billion yuan, a year-on-year decrease of 19.31%; net profit attributable to shareholders of listed companies was 899 million yuan, a year-on-year decrease of 47.85%. Among them, operating income in the third quarter was 3.610 billion yuan, a year-on-year decrease of 16.95%; net profit attributable to shareholders of listed companies was 107 million yuan, a year-on-year decrease of 64.32%.
According to the report, the main reason for the change in performance was the decline in profit margins caused by the decline in product prices.
Immediately afterwards, 16 more listed companies in the textile printing and dyeing industry successively released their first three quarter reports. Although there were no losses in performance, more than half of the companies had negative net profit growth rates, with the highest even reaching -59.31%.
Following this trend, it may only be a matter of time before these listed companies experience performance losses. In recent years, facing the complex and ever-changing domestic and international environment, printing and dyeing enterprises have been operating under pressure. Coupled with the rising prices of natural gas, electricity, steam and other energy sources, the rising cost pressure has continued to squeeze the printing and dyeing enterprises. Profit margins also directly affect the company’s revenue capabilities.
Foreign trade orders in the upstream textile market have shrunk significantly, and the number of domestic sales orders is limited, which will affect the downstream printing and dyeing industry. Once orders are insufficient to maintain production operations, the production capacity of printing and dyeing companies will not be able to be effectively used if they are forced to reduce startups. At that time, cost pressure will be difficult to transmit to other links, and it will be difficult to digest the pressure alone.
Taken together, in the absence of effective stimulus, the gradual weakening of market conditions will make it increasingly difficult to ensure the continuity of orders, and it cannot be ruled out that some printing and dyeing companies will fall into crisis again. Therefore, subsequent cylinder shutdowns, rotations, and vacations may become more common.
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