Recently, a dye price increase notice has appeared in many textile people’s circles of friends. This is not the only recent price increase for dyes. In early August, many dye manufacturers on the market raised their prices. Among them: Dispersed Black ECT 300%, the quoted price increased by 20% to 30 yuan/KG, Dispersed Emerald Blue S-GL 200%, Dispersed Brilliant Blue E-4R 100% increased simultaneously, among which 56# brilliant blue E-4R rose 100% to 92 yuan/KG; the price of acid yellow 220 and neutral dark yellow GL increased by 2,000 yuan/ton. The market price of disperse dyes is 27-28 yuan/kg, and the mainstream market price of reactive dyes is 21-22 yuan/kg.
Basically, dye prices have increased slightly recently. In just one month, dye prices have changed many times, which has to make textile people worried. Originally, the order volume and profits under the epidemic cannot be compared with previous years. If the increase in dyes drives up the dyeing fees, it will be even worse for every textile person.
Dyeing factory orders are unbalanced and price increases are difficult
Those who are familiar with the textile market should have more or less noticed recently that the order volume is relatively small. It is obviously increasing compared to the previous period. Some dyeing factories have come out of the state of production reduction and rotation, and have begun intensive queuing and pressing production. Textile people should be familiar with the current state of production. It was like this in dyeing factories every time dyeing fees increased. With the price increase of superimposed dyes this time, does it make it more likely that dyeing fees will increase?
It’s difficult! Although the market situation has improved recently, anyone who is interested should have discovered that the types of fabrics this time are extremely limited, and most of them are stretch fabrics. The number of manufacturers and processing and dyeing factories of this type of fabric is limited, and the manufacturers of conventional products that account for the majority of the market cannot share in this market trend. According to a polyester taffeta manufacturer, their polyester taffeta orders this year fell by 60-70% compared to last year. This is not an individual case in the market, but a common phenomenon. The processing and dyeing factories of the same type of fabrics must also suffer the same decline.
Most factories in the market have not completely gotten rid of the off-season. When the order volume cannot meet production, it becomes difficult to proactively increase dyeing fees. Just because it’s difficult to implement doesn’t mean it’s impossible.
Dyeing factories are confident that prices for bulk orders and small orders will increase
In fact Whether the dyeing factory will increase the dyeing fee due to changes in market conditions and dyes, you only need to study whether the dyeing factory has any price reduction operations when orders are scarce.
When orders decrease, dyeing factories take the initiative to lower prices to attract customers, which is a concession. With this attitude, even if the market improves temporarily and dyes are raised, dyeing fees will generally not be raised easily. However, if a factory is unwilling to offer profits and lower dyeing fees to customers when the market is bad, then it is likely to seize the opportunity to increase the dyeing fees once the market improves.
So did the dyeing factories in the early market reduce their prices more or not? “It depends on what the customer chooses.” It can be said that all dyeing factories are looking at the customer’s fixed dyeing fee. The dyeing fee for large customers and large orders is generally negotiable, but for small customers and small orders, the original price is basically non-negotiable.
According to the early dyeing fee operation model, those large customers who need to actively strive to maintain factory production cannot increase the dyeing fee at will. However, those small customers who do not have a strong voice will increase the dyeing fee and subsidize the big customers. Customers are still totally fine. The final price reduction depends on the customer, and the same goes for the price increase. Of course, those who suffer the most are those small customers and small orders.
The sudden increase in dye prices has nothing to do with downstream demand
The sudden increase in dye prices actually has little to do with changes in downstream demand. After all, the vast majority of dyeing factories have not yet emerged from the shadow of the off-season. , this wave of rise is likely to be caused by the tight supply caused by the production reduction of upstream dye factories.
Meta-phenylenediamine is an important raw material and intermediate for resorcinol and disperse dyes. After the Xiangshui Park incident in 2019, domestic m-phenylenediamine was mainly supplied by Zhejiang Longsheng and Sichuan Hongguang. The production capacity is 65,000 tons and 10,000 tons respectively, and the quotation has remained at a high level of more than 60,000 yuan.
However, Sichuan Hongguang discovered a total of 23 hidden dangers during the “Zhuan 2020” environmental protection rectification action in Sichuan Province, including 9 major hidden dangers, and requested an order for rectification. The rectification period is expected to be from July to October. Affected by this, the only domestic stable supplier of m-phenylenediamine is Zhejiang Longsheng, and the quotation has increased from 60,000 yuan/ton to 70,000 yuan/ton, which will support the prices of disperse dyes and resorcinol.
Both supply and demand will have an impact on intermediate links. Although downstream textile demand has not fully recovered, upstream dye prices are still likely to change to a certain extent. Resulting in an increase in dyeing fees. Therefore, textile people cannot just see that the demand in the downstream is not strong, but ignore the limited production capacity in the upstream. We must always be prepared for cost increases during the off-season! </p
