It seems that it has always been a common practice in the printing and dyeing industry to increase prices as soon as environmental protection is investigated. Recently, the central environmental protection inspection team once again strictly inspected 15 provinces. Under the high pressure of environmental protection, non-standard printing and dyeing companies have suspended production one after another. Production capacity is limited and downstream demand surges, giving printing and dyeing factories the confidence to increase prices. It is said that dyeing factories have even posted “aggressive” regulations recently that require depositing dyeing fees in advance to qualify for dyeing.
Just when everyone was watching the excitement in other places, in the past two days, the dyeing factories in Shengze area finally couldn’t help but quietly “take action”…
After seeing the following price adjustment information, the editor estimates that a large number of cloth bosses have passed out!
Is it possible that the inner monologue of the dyeing factory is:
The surrounding dyeing factories have already raised their prices. Can I not increase the prices?
Judging from the content of the above notice, the reason for the price increase is mainly due to the recent increase in the cost of coal, steam and other items. Compared with those confident “overlord clauses”, the price increase this time is actually a little helpless.
As we all know, the printing and dyeing industry is a veritable energy consumer. Printing and dyeing setting machines need to burn coal to conduct heat. The increasing demand for coal has become a source of atmospheric pollution. In order to further improve environmental quality, the Wujiang District Government also issued an explicit notice requiring all printing and dyeing companies to complete the “coal-to-gas” upgrade before 2019.
So, how much cost pressure will it increase if printing and dyeing enterprises complete a “coal-to-gas” upgrade?
Next, let us do some calculations: 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 accounting for the time being.
From the above calculations, it is not difficult to find that after the “coal-to-gas” transition, the fuel costs of dyeing plants will increase by 45%-115%. Such cost pressure is indeed difficult for dyeing factories to digest at once, and this cost is relatively fixed and irreversible.
Some people say that today’s dyeing factories are all “big men”. After all, in the eyes of weaving manufacturers, dyeing factories are confident even if they increase prices. They have little room for downstream bargaining, and they are all doing business with cash payments. How glorious! However, in fact, the dyeing factory also has difficulties in its heart that cannot be expressed:
1. First of all, rising dye prices and auxiliary prices have seriously weakened the profitability of enterprises. In the printing and dyeing industry chain, upstream dye companies have the absolute say in price, with 4-5 leading companies accounting for half of the market share. There are about 2,000 printing and dyeing companies in the country, and there is almost no room for bargaining in the downstream. The most is relationships. It just allows you to postpone payment for a few more days.
However, according to the editor’s understanding, printing and dyeing companies now generally “eat” about a year’s worth of inventory at one time and pay the money in one go, but the dyes have to be received in batches. In the past two years, the market prices of dyes have skyrocketed in turn. It is difficult for dyeing factories to raise dyeing fees or the price increase cannot keep up with the increase in dyes. This has indeed made it difficult for printing and dyeing enterprises to resist.
2. Secondly, the overall market this year is relatively weak during the peak season, and printing and dyeing companies are not ideal in accepting orders. Since March, most printing and dyeing companies have not felt the atmosphere of the peak season. A few days ago, the director of a dyeing factory in Shengze told the editor: “This year’s peak season is obviously not as good as in previous years. In previous years, our factory’s urgent orders would be queued for more than 15 days. So far this year, there has been no significant increase in orders. The main reason is that In the past, affected by high-priced raw materials, some weaving companies had difficulty placing orders. In addition, foreign exchange fluctuations and other reasons also affected some foreign orders. In short, it feels that the peak season has not come this year and may be delayed. The printing and dyeing market is not booming in the peak season, which has also caused dyeing factories to increase prices. Relatively cautious, even if a price increase notice is posted, the downstream acceptance still depends on whether the market can pick up.
Editor’s note: In short, as production costs continue to increase and downstream demand decreases, the printing and dyeing industry may be facing another major reshuffle. Facing the new market environment, printing and dyeing companies must put more effort into management and product innovation in order to survive in the current environment of internal and external pressure.
Of course, what we are looking forward to now is, first of all, the gradual recovery of market conditions, which can enable the smooth transmission of price increases in all aspects. I missed the “Golden Three”, wonder if there will be a “Silver Four”?
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