Clothing consumption is not booming during the busy season or during the year
The business agency reported on April 28th that the pressure of arrogant cotton prices has been transmitted to the upstream dye industry. The Morning Post reporter learned from the China International Dyestuffs Industry and Textile Chemicals Exhibition held in Shanghai on April 26 that due to the high price of cotton, many dye companies have started to lose money.
“We are definitely losing money in the first quarter of this year.†Huang Hongying, deputy general manager of Taixing Jinji Dyestuffs Co., Ltd., the country’s largest manufacturer of reactive dyes, told reporters that the cost of producing intermediates for reactive dyes rose by 20%, but the price of dyes did not increase. It even has to sell at a lower price because orders from the downstream are decreasing.
This is the first loss of Jinji dye in several years. “October last year, companies began to feel the deterioration of the market environment.†Huang Hongying said that last year's cotton prices, many of their downstream buyers to abandon the cotton Yarn business turned to chemical fiber, the rapid decline in market orders.
“Generally, March-May is the traditional peak season for textile and apparel consumption, but this year's peak season is not prosperous.†Huang Hongying said that she felt that this year's show was deserted. It is estimated that the high cotton price will continue for 1-2 years. The loss-making operation will lead to industry washing. Card, “Who can see who can hold it now.†(Editor's note: The Financial Times of the United Kingdom stated on the 27th that Fitch, an international credit rating agency, stated that with the increase in the price of cotton at the first wavelength time since the 1990s, as well as China’s Labor costs continue to rise, and many US-based clothing companies, from North Face, Lee Jeans to Levi's, will be forced to increase their clothing prices this year, up to 15% higher than last year.)
Reactive dyes are mainly used in textiles such as cotton and linen. Data from the China Dyestuff Industry Association shows that currently about a few hundred companies producing reactive dyes in the country produce 500,000 tons per year, but this year the market demand is only 350,000 tons.
“The industry generally expects to shuffle the cards in the first half of the year, but I don’t see that there may be companies that want to increase prices in one month. It’s a matter of death or survival.†Xie Jiangang, Director of Sales, Zhejiang Longsheng Group Co., Ltd. (600352) Judging that because of the low threshold of reactive dyes production, small factories, and fewer orders, most companies are afraid to lose market share and do not dare to increase prices, but the continued high price of cotton prices must accelerate the industry's reshuffle.
Public statistics show that by the end of 2009, the price of cotton bulk commodities was 14,873 yuan per ton, and in 2010 it was soared to 32,000 yuan per ton. On April 26, 2010, the price index of China Cotton (328) was displayed at 28,300 yuan per ton.
At the same time, “safety†requirements from downstream textile and apparel companies are also pushing the dye industry to reshuffle. According to Tian Liming, secretary general of the China Dyestuff Industry Association, some large textile and garment companies have increasingly listed their own “list of restricted substances for chemicals†and put forward many prohibitive regulations for the purchased dyes, only through safety inspections. Certified dye products will be given priority.
Tian Liming introduced that in order to assist dye enterprises to attract more buyers, the association has cooperated with Tianxiang Group, an international authoritative testing and certification body, to launch the “Certified Enterprise Directory for Chemical Testing and Certification†to provide guidance to downstream buyers. "In general, certification can increase the trust of downstream dyeing and garment enterprises and increase orders." Xie Jiangang said that for many companies, the pressure from environmental protection certification is even greater than the pressure of the market downturn.
“We are definitely losing money in the first quarter of this year.†Huang Hongying, deputy general manager of Taixing Jinji Dyestuffs Co., Ltd., the country’s largest manufacturer of reactive dyes, told reporters that the cost of producing intermediates for reactive dyes rose by 20%, but the price of dyes did not increase. It even has to sell at a lower price because orders from the downstream are decreasing.
This is the first loss of Jinji dye in several years. “October last year, companies began to feel the deterioration of the market environment.†Huang Hongying said that last year's cotton prices, many of their downstream buyers to abandon the cotton Yarn business turned to chemical fiber, the rapid decline in market orders.
“Generally, March-May is the traditional peak season for textile and apparel consumption, but this year's peak season is not prosperous.†Huang Hongying said that she felt that this year's show was deserted. It is estimated that the high cotton price will continue for 1-2 years. The loss-making operation will lead to industry washing. Card, “Who can see who can hold it now.†(Editor's note: The Financial Times of the United Kingdom stated on the 27th that Fitch, an international credit rating agency, stated that with the increase in the price of cotton at the first wavelength time since the 1990s, as well as China’s Labor costs continue to rise, and many US-based clothing companies, from North Face, Lee Jeans to Levi's, will be forced to increase their clothing prices this year, up to 15% higher than last year.)
Reactive dyes are mainly used in textiles such as cotton and linen. Data from the China Dyestuff Industry Association shows that currently about a few hundred companies producing reactive dyes in the country produce 500,000 tons per year, but this year the market demand is only 350,000 tons.
“The industry generally expects to shuffle the cards in the first half of the year, but I don’t see that there may be companies that want to increase prices in one month. It’s a matter of death or survival.†Xie Jiangang, Director of Sales, Zhejiang Longsheng Group Co., Ltd. (600352) Judging that because of the low threshold of reactive dyes production, small factories, and fewer orders, most companies are afraid to lose market share and do not dare to increase prices, but the continued high price of cotton prices must accelerate the industry's reshuffle.
Public statistics show that by the end of 2009, the price of cotton bulk commodities was 14,873 yuan per ton, and in 2010 it was soared to 32,000 yuan per ton. On April 26, 2010, the price index of China Cotton (328) was displayed at 28,300 yuan per ton.
At the same time, “safety†requirements from downstream textile and apparel companies are also pushing the dye industry to reshuffle. According to Tian Liming, secretary general of the China Dyestuff Industry Association, some large textile and garment companies have increasingly listed their own “list of restricted substances for chemicals†and put forward many prohibitive regulations for the purchased dyes, only through safety inspections. Certified dye products will be given priority.
Tian Liming introduced that in order to assist dye enterprises to attract more buyers, the association has cooperated with Tianxiang Group, an international authoritative testing and certification body, to launch the “Certified Enterprise Directory for Chemical Testing and Certification†to provide guidance to downstream buyers. "In general, certification can increase the trust of downstream dyeing and garment enterprises and increase orders." Xie Jiangang said that for many companies, the pressure from environmental protection certification is even greater than the pressure of the market downturn.
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