Just now, a certain imitation silk fabric dealer revealed to the editor that from now on, a local dyeing factory will start to increase prices!
As more and more printing and dyeing companies join the “big army” of rising dyeing fees, the local dyeing factories in Shengze finally can’t hold back anymore. Are they ready to start the price increase mode?
In order to save themselves, various places have started tentative rises
In just half a month, the dyeing factory, which is still in its infancy, has been making big moves. Either the dyeing fee has been raised urgently, or the price has been raised in a group. It looks very lively!
Judging from the survey, at present, dyeing fees are still in the stage of tentative price increases. Most printing and dyeing companies still retain certain discounts and negotiation space for old customers and large customers, and there is no “one-size-fits-all” overall increase. It can also be seen from various price increase notices that this wave of “price increases” is more like a “self-rescue” measure taken by printing and dyeing companies that are in a state of loss to alleviate cost pressure.
The latest data from the National Bureau of Statistics shows that from January to December 2022, the output of printed and dyed fabrics by enterprises above designated size in the printing and dyeing industry was 55.622 billion meters, a year-on-year decrease of 7.52%; the number of 1,716 printing and dyeing enterprises above designated size was 532, with a loss area of 31.00%, compared with In the same period of 2021, the number expanded by 12.08 percentage points; the total loss of loss-making enterprises was 3.508 billion yuan, a significant year-on-year increase of 89.90%.
Various “black swan” incidents occurred frequently last year, and printing and dyeing companies lamented their “powerlessness” in response to this. Those disclosed performance forecasts also show that the performance of printing and dyeing companies will collectively “stagnate” in 2022. Most companies’ revenue and net profits have declined, and very few companies can achieve profit growth. The severe market situation has made every printing and dyeing company Everyone felt the coldness.
Looking back on previous years, March and October are both “window periods” for dyeing fee adjustments. In addition, various cost expenditures have continued to increase. In order to ease operational pressure and pass on part of the costs, printing and dyeing companies will naturally not let go of this increase. Price guaranteed profit opportunity.
Break the deadlock and start charging some fees
It can be seen from the preliminary research that while the peripheral prices are rising one after another, the local dyeing factories in Shengze have not set off a large-scale “tide of price increases”. But just today, the dyeing factory finally took action to break the stable situation.
The fabric merchant lamented that the news of the price increase was quite sudden. At present, the dyeing prices of dyeing factories with which we basically have cooperation have increased to varying degrees. After communicating with those dyeing factories, I learned that the current performance of dyeing factories has exceeded the same period last year. Even when the machines are fully turned on, warehouse explosions still occur, and the average delivery date is delayed by about 7 days. Although the urgent work orders are still mainly those that were not completed a year ago, the overall production capacity is close to the pre-epidemic level.
When asked about the reasons behind this price increase, the fabric merchant analyzed that it was most likely due to the increase in various costs in dyeing factories.
Later, the editor also asked a salesperson from a dyeing factory. He said that he had not received any news of an overall increase, but he had been informed of additional charges for some links. There have been too many white embryos recently, and the workload has increased suddenly. It’s really a bit overwhelming!
A salesperson from another dyeing factory also said that there has been a lot of activity in the factory recently, and the order volume has increased significantly compared with last year, and the warehouse has been filled! Some of the orders we are doing now are unfinished orders from years ago, and some are newly arrived market orders. In terms of dyeing fees, the dyeing fees for some fabric types have been increased. For example, elastic fabrics have increased by about 1 yuan. For market customers, some early preferential measures will be gradually cancelled, and prices will return to normal levels.
It can be seen from the above feedback that most of the local dyeing factories in Shengze are currently tentatively raising prices in disguised form. To achieve a large-scale increase in dyeing fees, the continuity of orders may be the key.
Postscript
Under the current situation of strong expectations and weak reality, no one knows how long the liquidation situation in dyeing factories can continue. In the end, let us wait and see whether printing and dyeing companies can turn losses into profits through price increases…
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