Triple factors benefit the downstream printing and dyeing industry
Recently, influenced by the “Double Eleven†and the Spring Festival, the textile industry is very lively. Speaking of the scene of the grey cloth explosion, I believe everyone will remember the grand occasion of the Jiangsu and Zhejiang printing and dyeing industry at the beginning of the year. Nowadays, “Golden September and Silver 10†has passed, and the hot business scene of printing and dyeing enterprises has once again appeared. But this time not only because of limited production capacity, but also because of cost. Driven by many factors such as demand and cost, the printing and dyeing industry has seen a new wave of price increases in the near future.
Cost and demand rise, dyeing factory inventory accumulation As a traditional sales season, “Double Eleven†and “Spring Festival†are important events for downstream apparel companies, which requires fabric companies to place orders in advance. But before the "G20" Hangzhou Summit this year, many local printing and dyeing companies were shut down. Therefore, the double eleven orders have not been fully digested, and the printing and dyeing enterprises have ushered in the Spring Festival. At the same time, the steam required by printing and dyeing companies is supplied by coal-fired boilers or thermoelectric enterprises. The soaring price of coal directly affects the cost of steam for thermoelectric enterprises and printing and dyeing enterprises. Therefore, fabric manufacturers are worried about the price increase of printing and dyeing companies, and they have placed orders in advance. The concerns of fabric dealers, the reporter also confirmed from the shares of the airline. Li Junxiao, the company's secretary-general, admits to the reporter, "In recent days, with the rising coal price, it has brought operational pressure to the company. But recently the company has not adjusted the dyeing fee, mainly based on two points, one is the relationship between supply and demand. The second is the endurance of downstream customers. It is understood that since late October, some printing and dyeing enterprises in Jiangsu, Fujian, and even northern Zhejiang provinces, which are textile printing and dyeing provinces, have increased coal prices and increased dyeing aid costs. Is in the process of a round of dyeing fees, the price range of 200-1000 yuan / ton. For example, Fujian Huamao Weaving and Dyeing Co., Ltd., which raised the price on October 31, said that due to the recent sharp increase in coal and fuel costs, the company decided to increase the price of all varieties by 200 yuan/ton from November 1. “In recent days, the delivery time of printing and dyeing enterprises in Xiaoshan and Shaoxing has been tight, which is estimated to be related to the downstream orders of downstream fabric companies.†Mr. Yu said that in the near future, Wujiang and Fujian Shishi, which are also printing and dyeing places, have appeared printing and dyeing. Enterprises hold a group to raise prices. Worried that the dyeing fee will increase the Shaoxing fabrics, naturally, the order will be placed in advance. Environmental protection restrictions, some dyeing factories were shut down at the end of the year. At the beginning of this year, the Zhejiang Provincial Economic and Information Commission conducted a survey in the province, and a total of 472 enterprises were selected to meet the "zombie enterprise" conditions. Among them, 102 enterprises received government subsidies. 332 companies have bank loans, but the average capacity utilization rate in 2015 was only 27.08%.
Not long ago, Zhejiang Province announced the elimination list of 184 companies' outdated production lines or production equipment, covering 11 industries including steel making, paper making, leather making, printing and dyeing, chemical fiber, medical, metal melting, casting, steel rolling, weaving, and sintering bricks. The backward and excess capacity will be fully phased out by the end of November this year. This time, due to the increase in industry costs, the reduction of production capacity in the industry, and the surge in downstream demand, the printing and dyeing factory has formed a lot of inventory. Under the new normal, the dye industry will face many pressures and difficulties in the future. The rise of the textile and garment industry in Southeast Asia has brought a lot of impact to China's dye industry. Although the industry economy faces many difficulties and challenges, the development potential of the dye industry is sufficient, and the industry's technological innovation, management, and ability to go global have provided good conditions for the industry to continue to grow. In addition, as people's living standards improve, domestic demand for textiles will further increase.
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