In early March, printing and dyeing companies in Shaoxing and Jiaxing began the first wave of dyeing fee increases in 2020.
This news shocked half of the textile industry, especially the fabric merchants in Jiangsu and Zhejiang, who are particularly concerned about this news.
The editor originally thought that the printing and dyeing industry in Wujiang would not change, but in the past few days, the editor also received a price increase notice from the printing and dyeing factories in Wujiang!
Is this an individual case or is it a common phenomenon in the market? The editor conducted an investigation on this. The results show that the increase in dyeing fees is an exception, and most printing and dyeing factories in Wujiang have not issued price increase notices.
The printing and dyeing factory in Wujiang area that issued the notice is indeed an exception, but it is excusable. Its dyeing fees are originally lower than other printing and dyeing factories in the market, and its profit margins are very small. Therefore, once the price of dyes rises, the cost pressure on the factory increases sharply, and the factory has to increase its dyeing fees. Even after the price increase, the factory’s prices are still lower than the general market price, so the impact on fabric manufacturers is not great.
Some printing and dyeing factories are under pressure and prices are rising The price is strong
01
The soaring price of dyes has led to an increase in dyeing fees
Some disperse dyes have also adjusted their prices recently. In March, disperse black ECT 300% was quoted at 30,000 yuan/ton, an increase of 1,000 yuan/ton from February, an increase of 3.5%. Reactive black The price of WNN200% is 23,500 yuan/ton, an increase of 1,000 yuan/ton or 4.4% from the previous month. The soaring price of dyes has put cost pressure on some printing and dyeing companies. Especially in Shaoxing and Jiaxing, cotton and knitted fabrics are the main products. Such fabrics have a higher weight. Compared with chemical fiber cloths in Wujiang, the cost of dyes required is higher. Larger, so the price had to be raised to alleviate it.
02
Under the epidemic, the cost of printing and dyeing factories has increased
In addition, although Shaoxing, Jiaxing and other places have also resumed work in early March, Zhejiang is among the hardest-hit areas , there are strict procedures for workers to rework, and companies spend a lot of money in this regard. In addition, under the epidemic, enterprises have one more epidemic prevention and control expense than before. Therefore, in general, the costs caused by the epidemic are relatively large.
03
After the resumption of work, orders are full, and some varieties are selling well
On the other hand, 3 in Zhejiang Work resumed at the beginning of the month, and orders from the previous year were piling up. Like the Wujiang area, it was very busy. A printing and dyeing factory in Shaoxing experienced a “full warehouse” after starting operations, and most printing and dyeing factories also began to arrange orders and gradually became full. Based on the above three points, a price increase seems inevitable.
The market is polarized, printing and dyeing factories are cautious in raising prices
01
Printing and dyeing market Two levels of differentiation, market instability
However, this is not the case in the printing and dyeing industry in Wujiang, so it seems inappropriate to increase the dyeing fee. At present, the printing and dyeing market in Wujiang area is polarized. Some manufacturers are still piling up gray fabrics and pressing cards for production, while some manufacturers are becoming increasingly idle. The performance of printing and dyeing factories is often determined by the types of fabrics they produce. At present, the performance of imitation silk and pongee is slightly outstanding, so the printing and dyeing factories producing such fabrics are doing better business. Other conventional varieties are involved.
When chatting with the editor, a salesperson from a printing and dyeing factory in Wujiang area that specializes in conventional products mentioned: “Recently, the work has been less than a while ago. There are relatively few air flow cylinder workshops, but the work in the inclined pipe workshop is pretty good. The products are still old varieties and haven’t changed much. It’s just that the delivery time is 2 or 3 days shorter than before.”
The air cylinder and inclined tube workshops mentioned above are also used to produce different fabrics, and the air cylinder The fabrics produced are on the high-end side, so it can be seen that the current market is still dominated by popular fabrics. However, the small quantity is a big discount. Large orders are rare, and most of them are “small batches and multiple batches”. The demand for textile fabrics is restricted, and the entire textile and apparel market generally lacks confidence in the market outlook, so orders are placed cautiously and conservatively. In particular, the entire international crude oil market has been experiencing violent fluctuations recently. The epidemic has spread across the world, and the demand for clothing has weakened. Many orders that were originally intended to be placed have been cancelled, and the order volume has even decreased.
02
If you raise prices, you will lose customers, so don’t dare to act rashly
With such a dull printing and dyeing market, even if dye prices increase, it will be difficult for manufacturers to increase dyeing fees. With the price of polyester falling, fabric manufacturers are facing huge pressure to keep prices down, and their profits are cut. If the dyeing fee is raised at this time, it will be unbearable. The result will be to choose a dyeing factory with a low dyeing fee.
A salesperson from a large printing and dyeing factory revealed, “Since last year, our factory has changed its leadership and implemented many preferential policies, so business was good in 2019 when the market was not good. Now It’s impossible to increase dyeing fees. Once the price increases, all customers will run away!” This is the reason why printing and dyeing factories in Wujiang did not follow the trend and increase prices on a large scale.
The printing and dyeing market is gradually declining, and dyeing fees may run smoothly
Fabric merchants can let go of their worries. Printing and dyeing factories will not increase prices unless absolutely necessary. Just like gray cloth factories, even if the raw materials increase by 500 yuan, the price of gray cloth may not increase for the same reason. Now that the entire market is not doing well, everyone should unite.
In Shaoxing, Jiaxing and other places, although orders were booming in early March and dyeing fees increased, with the recovery of production capacity, the backlog of orders was gradually released, and the printing and dyeing factories did not have the initial pressure. It’s busy. According to the person in charge of a dyeing factory in Jinhua, Zhejiang, although the dyeing factory has started production, the workshop is currently producing orders left over from years ago, and there are no new production orders for the time being. Therefore, the printing and dyeing market in Zhejiang may become as flat as that in Wujiang.
The editor believes that it is unlikely to increase dyeing fees, because dyeing fees have always been relatively stable, and the textile market in the past two years has also been stable, so dyeing fees will also tend to be stable. The trend of dyeing fees in the later period also needs to be paid attention to two important aspects such as dye prices and market conditions.
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