Introduction: Recently, Jiangsu Province has launched the “263” action inspection, and the special action of “two reductions, six reductions, and three improvements” has once again targeted the province’s severely polluting chemical companies. This environmental protection campaign will once again restrict the production capacity of small and medium-sized dye companies, and will also significantly reduce the operating load of leading companies. As the main raw material in the printing and dyeing industry, the price changes of dyes have always attracted great attention from the printing and dyeing and downstream fabric markets. The launch of this special environmental protection campaign may tighten the supply of dyes to a certain extent. The supply side will tighten, and dye price increases will also become a high probability event.
The dye industry is under great environmental pressure, and rising dyeing costs are a high probability event
It is reported that since January, the overall demand in the printing and dyeing market has been stable and weakening, and the domestic dye price market has been running smoothly as a whole. As of January 16, the quotation of mainstream manufacturers of dispersed black ECT 300% is around 23 yuan/kg, which is at a low price. Compared with In the third quarter of 2016, the price peaked at 38 yuan/KG, a drop of nearly 40%. From the dye price trend chart in the first half of last year, we can find that after March last year, dye prices continued to rise sharply. The trend of dye prices last year was mostly related to factors such as raw material prices, dye production capacity, supply and demand, and national environmental protection policies.
Entering 2017, these factors affecting dye prices have not changed substantially. On the contrary, the situation has become more severe. With the continuous upgrading of national environmental protection policies, the concentration of production capacity in the domestic dye industry is still increasing, and the supply and demand pattern continues to tighten. Although 2016 was the most stringent year in recent years for environmental protection regulations, from Zhejiang’s regulations in cooperation with the G20 to national inspections by the Central Environmental Protection Inspection Group, many domestic dye companies were severely affected, and a large number of highly polluting backward production capacities were eliminated. But 2017 is a more critical year. This year, the country’s environmental protection efforts will be stronger, and the dye industry will face more severe tests. Under the high pressure of environmental protection, dye prices are easy to rise but difficult to fall in the first half of this year. In addition, in addition to the rise in dyes, the price of printing and dyeing auxiliaries also rose significantly last year under the influence of the country’s supply-side reform and the continuous rise of chemical raw materials. It can be said that the cost pressure in the printing and dyeing industry is still very high this year.
Environmental protection equipment, coal-to-gas conversion, printing and dyeing costs continue to increase
Coal-to-gas conversion has been one of the hottest topics in the printing and dyeing industry in the past two years. The printing and dyeing industry in Shengze and Shaoxing has basically completed the upgrade of “coal to gas” in the past two years, and “coal to gas” is still in full swing in other areas of the country. Now let us calculate the approximate cost of burning coal and natural gas. Since fuel accounts for more than 90% of the total cost, we do not include boiler water, personnel wages, boiler room power consumption and other factors into this cost for the time being. Within accounting.
Therefore, it is not difficult to find that since the “coal-to-gas” change, the fuel costs of dyeing plants have increased by nearly 45% to 113%, and the cost pressure has increased significantly, and this cost is basically fixed and irreversible. In addition to the surge in costs of “coal-to-gas” conversion, under strict environmental protection pressure, investment in environmental protection equipment in the printing and dyeing industry has also been ongoing. These equipment are generally at least several million in size. Although printing and dyeing has always been known as the most profitable and labor-saving industry, in reality, the cost pressure borne by printing and dyeing factories is far greater than everyone imagines.
We all know that general dyeing costs have gone up, and it is even more difficult to drop them again. What’s more, both environmental protection and raw material prices have increased the costs of the printing and dyeing industry to a certain extent. Now that the “263” action inspection has launched again, the environmental protection situation has escalated, and the “bull market” in the printing and dyeing industry will continue after the holidays, and may have a “good start”!
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