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Dyestuff prices soared downstream and were not willing to resist

2019-09-27 17:16

Recently, because of the rising price of dye, the printing and Dyeing Industry Association issued a proposal, calling on the printing and dyeing enterprises to boycott the products of chemical raw materials enterprises headed by Longsheng group.

 

Prices of dyes have risen continuously since 2013. Industry insiders said that although enterprises and related associations all want to join forces to improve bargaining power with upstream enterprises, due to the scattered and small scale of enterprises, there is no complete agreement at present.

 

Chen Quansheng, Secretary General of Shaoxing Keqiao printing and dyeing industry association, said that in June this year, the Keqiao industrial printing and dyeing association had led the enterprise to resist the action of raising the price of dyes. In August last year, the printing and dyeing industry association organized more than 200 printing and dyeing enterprises to appeal to two major dyestuff giants, 600352 (SH) and two (002440, SZ) monopolies. After investigation, government departments failed to produce evidence. "Printing and dyeing enterprises are very difficult to survive. In the first half of this year, all the printing and dyeing enterprises in the area were not as profitable as Longsheng group. In this case, the price of dyes will be further increased.

 

Prices of dyes are soaring all the way

 

In March this year, the Journal reported that there were hundreds of printing and dyeing enterprises in the region, and the dyeing and finishing capacity accounted for more than 1/2 of the total province's total, accounting for nearly 30% of the total printing and dyeing volume above the national scale.

 

Even so, the bargaining power of the printing and dyeing industry to the upstream suppliers is still limited. "Raw material enterprises are relatively concentrated, such as Longsheng, Runtou and other giants occupy most of the market share." Chen Quansheng said, "By contrast, printing and dyeing enterprises are scattered, no one can fight these upstream large enterprises."

 

According to Chen Quansheng, dye is the main raw material of printing and dyeing enterprises, and large domestic dyestuffs enterprises are mostly concentrated in Jiangsu and Zhejiang provinces. Only 3 of Zhejiang's Longsheng, run soil shares and Hangzhou Jihua are producing more than 2/3 of the national dyestuff market. In the past, about 90% of dyestuffs used by printing and dyeing enterprises came from these three enterprises. Prices of dyestuffs are soaring. Printing and dyeing enterprises can only react passively.

 

It is reported that after the Spring Festival this year, the price of disperse dyes soared, doubling from last year. The rise in the price of disperse dyes has driven up the prices of other dyes, some of which have tripled since last year. According to "business daily" reported that in order to cope with rising dye costs, the local printing and dyeing enterprises increased their dyeing prices before and after the Spring Festival. Since March 1st, more than 20 printing and dyeing enterprises in Binhai, Lizhu, and other places have generally raised their printing and dyeing processing fees by 10%~12%.

 

Prices of dyes as raw materials for printing and dyeing have been hovering at a low level until 2012, staying at 15,000 yuan to 17,000 yuan per ton. In 2013, domestic dye prices rose by more than 70%. Among them, the average price of the main varieties of disperse dyes increased from 17,000 yuan/ton at the beginning of the year to 33,000-35,000 yuan/ton at the end of the year, with an increase of 94.12%-105.88%. The average price of reactive dyes also increased from about 20,000 yuan/ton to 35,000 yuan/ton-36,000 yuan/ton, with an increase of 75%-80%.

 

Chamber of Commerce of Printing and Dyeing Industry Leads the Resistance

 

"Overcapacity in the industry and increasingly stringent environmental standards, printing and dyeing enterprises can gradually adapt to the transformation, but the price of dyes and chemicals has risen sharply, so that the original profit margins have been reduced again." A veteran printing and dyeing enterprise manager said that since the beginning of this year, most printing and dyeing enterprises have also increased their dye charges, but the rate of increase is still lower than that of the dye prices, and the profits raised are also completely absorbed by the Dyestuff Factory.

 

 

 

 

 

As a large market for dyestuff, the purchase volume of the entire printing and dyeing enterprises can account for 40%~50% of the output of several enterprises such as Longsheng and run earth. The printing and dyeing association hopes to unite the printing and dyeing enterprises to cope with the rising price of dyes. It is hoped that the price will be returned reasonably in order to facilitate the long-term development of the whole industry upstream and downstream.

 

The printing and dyeing industry association organized more than 200 printing and dyeing enterprises, and jointly submitted a report to the price supervision and inspection sub Bureau of the province, mainly aiming at the two largest dye giants of A shares, namely, longlongsheng and run soil shares. After a joint investigation by the Provincial Bureau of commodity prices and the Commission of letters and information, it failed to find practical evidence. Relevant personnel of the hair Reform Bureau also disclosed to the "daily economic news" reporter that at that time, the provincial Price Bureau interviewed several enterprises and printing and dyeing associations of Longsheng, demanding reasonable pricing, but no evidence of monopoly was found.

 

Material giants benefit a lot

 

Compared with the difficulty of printing and dyeing enterprises, the two major raw material giants, the dragon group and the leap soil share, have benefited from the rising price of dyes and chemicals. The semi annual report shows that the net profit attributable to shareholders of the company in the first half of 2014 was 1 billion 542 million yuan, compared with 547 million yuan in the same period last year, an increase of 181.60% over the same period last year. According to the Oriental wealth statistics, the gross profit margin of the dragon has risen from 26.07% in the first quarter of last year to 40.08% in the first half of this year, and the net interest rate has also increased by 14.27 percentage points in the same period, from 6.35% to 20.62%. In the aspect of dyestuff business, the half year report shows that the gross profit margin of the business increased by 13.89 percentage points over the same period, reaching 44.73%.

 

Regarding the situation reflected by the printing and dyeing enterprises, on September 12, the reporter called Dong Secretariat Office of Longsheng Group. The other party said that Yao Jianfang, the group secretary, was on a business trip and could not respond to the relevant information immediately. In September 15th, the reporter went to the location of Longsheng group, which is located in the town of Tao, which is responsible for all media interviews. Yao Zong is responsible for all the media interviews. Later, the reporter called Yao Jianfang again and the other side said no.

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