As crude oil stopped rising, polyester raw materials fell to varying degrees, and gray fabric prices began to stabilize. But just when everything was calm, dyeing fees started to rise. Due to the increase in steam fees, the increase in dyeing fees became a new trend.
When dyeing factories are busy and crowded with orders, it is reasonable to have various fee-increasing items to speed up production such as “expedited”, “expedited”, “express” and “fast”. And one order will increase the dyeing fee by about 1 cent. The increase in dyeing fee has already reduced profits, and adding an urgent order can make the situation worse. But having said that, if there are constantly other customers “expediting” production, the waiting time may be longer, and in the end you have to choose to pay to speed up production.
In the end, all customers’ order production may not be able to escape the additional “expedited” fee, and the dyeing factory will achieve the purpose of further increasing the dyeing fee. And this rise does not depend on craftsmanship, dye vats, or fabrics, but is entirely based on time. In the past two days, the editor was chatting with a friend and discovered that if the order from their dyeing factory did not use expedited orders, they would not be able to start even if they queued for a month.
Logically speaking, the most direct reason why dyeing fees can rise is that the printing and dyeing market is very good. Any increase in dyeing fees in the past was based on this foundation, and the same is true for the recent printing and dyeing market. Only when the order volume of the dyeing factory exceeds the production capacity can the situation of “supply exceed demand” occur, and the dyeing factory can have the right to say the dyeing fee.
But has peak season really arrived? Although the time has arrived in mid-to-late March, which according to the rules has reached the time point of the real traditional peak season, the editor believes that the peak season has not really arrived yet! It seems that there are piles of gray fabrics in the dyeing factory, but in fact it is because the country is affected by the epidemic and transportation is restricted. It is troublesome to transport the gray fabrics to other places. Therefore, many orders are concentrated in the factory in Shengze, which leads to the dyeing factory. The production capacity cannot keep up with the order volume and needs to be “expedited”. At present, the operating rate of printing and dyeing factories in Jiangsu and Zhejiang is around 73%, which is considered to be maintained at a moderate level.
It may not only be trading companies that are hurt by the increase in dyeing fees. In fact, from the perspective of dyeing factories, they also think they are very hurt. After all, the previous increase in crude oil has led to an increase in steam fees, so the driving force for the increase in dyeing fees is cost, It is profit compression. The increase in dyeing fees does not bring actual profits, but only covers costs. Therefore, printing and dyeing factories are also “victims”.
From the perspective of textile trade, although the current market is not very prosperous, small batch orders are constantly coming into the warehouse, and the queuing phenomenon is very obvious. This is a time when traders rely on printing and dyeing factories, so they are not afraid of losing customers even if prices increase. But what happens after that? As we all know, the textile industry is a seasonal industry. Once the peak season is over, the order volume will drop sharply, and the printing and dyeing factories will be idle. Then the high dyeing fees will become a “stumbling block”, because if the price is reduced to attract customers, it will Profits will be lost, so cost pressure will continue to weigh on the chest of printing and dyeing factories.
For trading companies, the control of dyeing fees is not the same as that of gray fabrics. They can avoid the risk of price increases by stocking up in advance. No matter how much the price increases later, it will have no impact on the orders that have been signed. Due to the different colors and dyeing requirements of each order, it is difficult to produce in advance. Today’s market puts trading companies in a dilemma.
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