Printing and dyeing factories have reduced dyeing fees to overcome the “difficulty”!
It is midsummer in July, the hottest time of the year. In the dyeing and finishing workshop of Yingjili Printing and Dyeing Co., Ltd. in Keqiao Binhai New District, Shaoxing, the indoor temperature is not as expected. height of. “The current situation is more severe than that from January to March. There are fewer machines running and the temperature in the workshop is relatively not that high.” The manager of the printing and dyeing production department of Yingjili told reporters that now is the off-season for the domestic market and foreign markets. Due to the epidemic, there has been no improvement, so the overall operating rate of dyeing factories is very low. He also heard that some dyeing factories even gave employees a month or two off, which put great pressure on the industry. “In order to maintain the factory and allow the workers to have work and food to eat, our boss decided to reduce part of the processing fees to attract some customers,” said Director Bian.
▲Yingjili Printing and Dyeing
It is understood that due to the impact of the epidemic this year, The impact on the entire textile industry is very large, and business volumes in all links are sluggish due to lack of orders. The same is true for printing and dyeing factories. The operating rate has been insufficient for a long time, and the daily warehouse volume has dropped from one million meters to two to three million meters.
In such a situation of long-term lack of orders, some dyeing factories have lowered their dyeing fees to maintain basic operations and retain customers to survive in the industry competition of “more monks and less rice”. The most important thing for these printing and dyeing companies this year is to survive for a long time.
“The production capacity of our Keqiao printing and dyeing cluster is global production capacity. The foreign trade export processing of printing and dyeing enterprises here accounts for more than half of the total processing volume. But in the first half of this year, the entire European and American markets , the Middle East market, and most markets in Africa are basically closed. More than half of these orders have disappeared, and the pressure can be imagined, so the decline in dyeing fees is inevitable.” Wang Wenjun, general manager of Shaoxing Yingjili Printing and Dyeing Co., Ltd. estimated, He told reporters: “The original dyeing fee of 2 yuan/meter may now be only 1.3-1.4 yuan/meter. This year’s dyeing fee has dropped by about 30% compared with the same period last year.”
According to the latest data report from the China Printing and Dyeing Industry Association, from January to May 2020, the output of printed and dyed fabrics by printing and dyeing enterprises above designated size was 17.612 billion meters, a year-on-year decrease of 14.46%. As the foreign epidemic situation has not yet shown obvious signs of improvement, the export situation of printing and dyeing products is still grim. However, my country’s epidemic prevention and control situation is good. With the continuous release of domestic consumption potential, the recovery of the domestic demand market is obvious. The decline in output from January to May narrowed by 1.40 points month-on-month. percentage point.
▲Hangmin Delta Dyeing and Finishing
Hangzhou Hangmin Delta Dyeing and Finishing located in Xiaoshan, Hangzhou The company’s product structure before the epidemic was 80-90% foreign trade orders, with a small amount of domestic sales orders remaining. At the early stage of the outbreak of the epidemic in Europe and the United States in March, Delta Air Lines Dyeing and Finishing adjusted its strategy in a timely manner and took advantage of the “braking period” of foreign trade orders to push the entire business team to shift its focus to domestic customers. “Wuhan, as the hub of China, has also opened up a wave of market conditions in the domestic market since the lockdown was lifted on April 8. We made timely strategic adjustments to seize this wave of market conditions.”
According to Lu Chongliang, director of the general manager office of Hangzhou Hangmin Damei Dyeing and Finishing Co., Ltd., the company’s startup rate this year is relatively stable, with a maximum of 80-90%. Except for the lack of production capacity in February, the performance in March was basically the same as last year. A total of 92 million meters of cloth were produced, which was only two to three million meters less than last year.
Then throughout April-June, production capacity also reached 60%-70% of the same period in the peak season last year. Lu Chongliang said that in order to expand the domestic market, Hangmin Delta’s dyeing fees have also been reduced accordingly. The specific price has dropped by 5%-10%. “We will make a profit of about 0.15 yuan from the original dyeing fee price of 3 yuan/meter. On the one hand, Another reason for benefiting customers is that pricing will vary depending on the requirements of domestic and foreign trade orders.”
Faced with the current complex international situation and fierce market competition, Hangzhou and Shaoxing Printing and dyeing companies have adopted some preferential dyeing fee policies to win more customers, or to consolidate the relationship between customers and survive the off-season. Regarding the prediction of the printing and dyeing market in the second half of the year, Wang Wenjun believes that the destructive power of COVID-19 on the entire economic system is unimaginable. If the international epidemic can be completely controlled in the second half of the year, there will still be a long recovery period to go.
In his opinion, there are many uncertain factors in the market, so it is still unknown to what state the textile market can return to in the future. Lu Chongliang suggested that printing and dyeing enterprises still need to make steady progress in the second half of the year, change their operating ideas in a timely manner, actively expand the market, grasp the domestic trade market, and first ensure the stability of enterprise production capacity before seeking further development.
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