With the arrival of the traditional sales peak season of “Golden Nine and Silver Ten”, in early September, the market News of rising dye prices is overwhelming, and disperse dye prices have been raised across the board. Taking dispersed black ECT 300% dye as an example, the ex-factory price of the product has increased from 28 yuan/kg previously to 32 yuan/kg recently, an increase of 14%. In the past two months, the price of this product has been increased by 36%. Faced with rising dye prices, what choices will printing and dyeing companies make?
01 Tight supply is the main reason for the increase in dye prices
Analysts from all parties believe that this round of disperse dyes The price increase first comes from raw material support.
Affected by the explosion in northern Jiangsu last March, m-phenylenediamine, an important raw material for disperse dyes, is in short supply. At present, the only domestic m-phenylenediamine supply companies are Zhejiang Longsheng Co., Ltd. and Sichuan Northern Hongguang Specialty Chemical Co., Ltd., with annual production capacities of 65,000 tons and 10,000 tons respectively.
However, since resuming work in May this year, Sichuan Hongguang has exposed serious problems in safety management and other aspects during the Sichuan Province “Casting Safety 2020” inspection. It has suspended production in an orderly manner starting in July, and in October The rectification and acceptance must be completed before the 9th, and production can be resumed only after subsequent approval is passed. The production resumption time is to be determined.
At present, Zhejiang Longsheng is the only stable domestic supplier of m-phenylenediamine, accounting for more than 99% of the market share. Under the dual stimulus of tight supply and demand for performance growth, the price of m-phenylenediamine in Zhejiang Longsheng began to rise: in mid-July, the price of m-phenylenediamine was 60,000 yuan/ton, and by the end of July it had risen to 70,000 yuan/ton. tons, an increase of more than 15%.
At the same time, rising raw material prices and demand are gradually recovering, and it is expected that subsequent increases in dye prices will be highly sustainable. Relevant data shows that from April to June this year, domestic cloth output was 3.19 billion meters, 3.24 billion meters, and 3.35 billion meters respectively, increasing month by month and narrowing the year-on-year decline. In terms of exports, the export delivery values of the textile and clothing and apparel industries from April to June were 20.43 billion yuan, 21.86 billion yuan, and 26.04 billion yuan respectively, increasing month by month and narrowing the year-on-year decline. In the second half of the year, with the arrival of the peak demand season, dye price increases are expected to be sustainable.
In addition, it is worth noting that some listed dye companies pointed out in their recently released semi-annual reports that oil price fluctuations also have a greater impact on dye prices. It is understood that due to the fluctuations in crude oil prices, the prices of many raw materials have fluctuated significantly, and oil prices will still fluctuate significantly in a certain period of time in the future, with the risk of rising costs.
However, compared with previous years, dye prices this year are still low. Zhang Guoliang, a dye industry analyst at Zhuochuang Information, said: “Although the current dye prices are already at a high point from this year’s market situation, compared with historical prices, they are still at a lower-middle level. When prices were at high points in previous years, scattered The actual unit price of black ECT 300% dye reaches a maximum of more than 45 yuan.”
02 Enterprise dyeing fee prices vary
Upstream dye prices The increase has prompted many printing and dyeing companies to adjust dyeing fees to cope with the increase in production costs.
“The prices of thick cloth and thin cloth (desizing cloth, direct dyeing cloth) will be increased by 0.1 yuan/meter. The price of thick cloth exceeding 900 grams or pre-ordered and single-sided light will be increased by 0.2 yuan/meter. .” “The price of knitted products will increase by 200 yuan/ton based on the original dyeing fee, and the price of nylon and woven products will increase by 0.2 yuan/meter based on the original price.” “Coral velvet, De velvet, and Zhigong nylon ex-warehouse prices An increase of 500 yuan per ton.” In early September, printing and dyeing enterprises in Jiangsu and Zhejiang took the lead in issuing price increase letters. On September 7, as one of the leading companies in the industry, Shandong Weiqiao Special Wide Printing and Dyeing Co., Ltd. also issued a price adjustment letter, raising the dyeing fee by 0.2 yuan/meter to 0.3 yuan/meter.
A person in charge of a dyeing and finishing enterprise in Zhejiang who did not want to be named said that since the beginning of this year, the printing and dyeing market has been basically in a tepid state. Although there has been a short peak production season, most printing and dyeing enterprises have It has been in a state of unsaturated production. The export market is not smooth, and everyone is focusing on developing the domestic demand market. “Dyes have always been in a strong position in the upstream. Recently, the prices of raw materials and auxiliary materials have increased significantly. We cannot bear the rising costs, so raising dyeing fees is actually a helpless move.”
“We now produce the dyes we need They all need to pay first and then deliver the goods, so sometimes there will be a shortage of funds and capital turnover. In order to ensure normal production, the company can only increase the dyeing fee.” Another person in charge of the company said frankly.
However, as of press time, there was no news of rising dyeing fees from printing and dyeing manufacturers in Guangdong. “This year, the company’s development philosophy is to give priority to maintaining good customer relationships while striving to ensure product quality. Compared with previous years, the company’s dyeing and finishing processing fees this year have dropped by at least 10%. If the dyeing fees are increased at this time, it is likely to This will cause fabric manufacturers to transfer orders to printing and dyeing factories with lower dyeing fees, which will cause us to lose customers and make the loss outweigh the gain.” said a person in charge of a company in Shantou area.
The person in charge of another company said that the company had already prepared stocks in advance, so the increase in dye prices will have little impact on the company. He judged that most printing and dyeing companies would not easily increase dyeing fees. Although some dyeing factories are now raising prices, they are just testing the “water temperature” of the market to see how the market reacts. He analyzed: “According to market rules, in previous years, the price of dyes would basically rise during the ‘Golden Nine and Silver Ten’ holidays, but the reason for this year’s price increase is not…��Demand-driven, dyes have not yet developed enough motivation to maintain high prices. ”
“Recently, the trading atmosphere in the dye market has been lackluster. The downstream printing and dyeing factories have started operations relatively stably. Dyestuff procurement is still mainly based on rigid demand. Traders mostly follow the market. However, combined with the production plan of autumn clothing, mainstream factories in early September The intended offer price has been raised, and it is expected that the dye market transaction price will still have momentum for improvement in the short term. However, whether prices will continue to rise next depends on the performance of the industry during the year, including the impact of the epidemic, downstream demand, terminal clothing retail conditions and other factors. ” Zhang Guoliang said.
03 Maintain prudent procurement and strengthen self-construction
In the face of unclear situations Due to market demand, industry experts said that regardless of the future trend of dye prices, printing and dyeing companies must always remain cautious when purchasing dyes. When purchasing dyes, printing and dyeing companies should adopt small batches and multi-batch methods to reduce the risk of dye price fluctuations; You can also adopt the “quantity-by-sales” model, which determines the purchase quantity according to short-term production needs. In addition, since communication, logistics, and transaction methods are becoming increasingly fast, if the amount of dye used is small, you can usually place an order in the morning and have it the next day. The goods can arrive, and normal production will not be affected.
“At present, the most important thing for printing and dyeing enterprises, as well as downstream textile enterprises, is to innovate and accelerate transformation and upgrading; the second is to stay together, especially for printing and dyeing enterprises. Take the path of intensive development and enter industrial parks to cope with environmental pressure. “The relevant person in charge of the China Printing and Dyeing Industry Association pointed out that at present, the world’s major disperse dye manufacturers are in China, so they cannot rely on imports to alleviate the tight supply of domestic disperse dyes in the short term. It is best for printing and dyeing companies to be able to adjust their inventory according to their own inventory status, Reasonable stocking should be carried out according to the demand level to avoid greater cost pressure.
Therefore, in the face of rising production costs, printing and dyeing enterprises must first strengthen technological innovation, break through key industry technologies, and focus on the development of high-quality printing and dyeing product design and manufacturing technologies, including functional textile dyeing and finishing technology, multi-component textile dyeing and finishing technology, high color fastness textile dyeing and finishing technology, and new fiber dyeing and finishing technology, to develop high-quality, multi-functional, differentiated , high value-added products provide a technical foundation to enable fabrics to develop in the direction of comfort, fashion, environmental protection, diversification, multi-function and intelligence, thereby improving the core competitiveness of products. For example, the use of foam dyeing technology, reactive Key technologies for salt-free dyeing, ecological dyeing and finishing technology, etc.
Secondly, printing and dyeing enterprises must accelerate the adjustment of product and market structure and realize the transformation from scale and quantity to quality and efficiency; they must continuously improve the quality of high-quality products share, thereby increasing the added value of products and establishing new competitive advantages.
Thirdly, printing and dyeing enterprises must solidly promote lean management, do a good job in basic lean management work such as 5S on-site management, quality management systems, and standardization, and actively explore New ways to improve quality, reduce costs and increase efficiency; at the same time, it is necessary to improve the level of informatization and intelligent management, promote the integrated application of the Internet, big data, cloud computing, and the Internet of Things in the printing and dyeing industry, and accelerate the management of ERP, MES, PLM, SCM, CRM, etc. The application of information systems creates a full-process intelligent printing and dyeing factory to alleviate the pressure of rising dye and labor costs.</p
