With the advent of the “Golden Nine and Silver Ten”, the textile printing and dyeing industry is expected to usher in an upward cycle. On August 26, news of an emergency price increase came in the dye sector, and related stocks also bucked the market trend and rose, which was interpreted as a signal of industry recovery.
Recently, there is news that due to factors such as rising prices of intermediates, the price of dispersed black ECT 300% has been urgently increased by 10%, and the price of acid black has increased by up to 2,000 yuan/ton.
The cost of raw materials drives up the price of dyes
The “gold content” of this price increase to promote the market is not sufficient
As for the “gold content” of this price increase, industry analysts have different opinions. Gu Shujing, an analyst at Zhuochuang Information, said that dispersed black ECT 300% did indeed rise from 22 yuan/kg to 23 yuan/kg, an increase of 10%, but it was more driven by costs. The actual transaction volume was light, and downstream demand did not pick up significantly. Some industry analysts also told reporters: “The dye factory reported that the price is still 23 yuan/kg, and the actual order can be discounted by 1 yuan to 22 yuan/kg. The market price may be different for each company. The raw materials have increased a bit, but The market supply exceeds demand and demand is not good.”
Zhejiang Longsheng’s operating data shows that since the fourth quarter of last year, the prices of acrylonitrile and p-nitroaniline, the main raw materials for disperse dyes, have shown a slight increase, 2- The price of cyano-4-nitroaniline was basically stable in the first half of this year after falling slightly. During the same period, the main raw materials of intermediates such as pure benzene increased significantly.
Dye price changes are highly related to dyeing fees. After all, the reason why all printing and dyeing factories increase dyeing fees is the increase in dye costs. So can this dye price increase continue, will it affect the dyeing fee price? Although the raw material cost side is facing pressure, the demand for dyes in the downstream printing and dyeing links has not yet improved. “We monitor that the operating rate of printing and dyeing plants is about 70%, which is a few percentage points lower than the same period in previous years. Printing and dyeing plants generally respond poorly to demand and are more cautious in accepting orders.” Analysts told reporters. Regarding the opening of printing and dyeing factories, the reporter also called the China Printing and Dyeing Industry Association, and the relevant person in charge said that there was no statistical data. In its description of the industry situation in the first half of the year, it was mentioned that the operating income of printing and dyeing enterprises above the designated size has been basically the same as before the epidemic. However, due to the significant increase in raw materials, labor costs, shipping costs, etc. since this year, the operating costs of enterprises have increased and their profit margins have increased. It has been squeezed and is obviously not as good as the same period in 2019.
People from Zhejiang Huajiang Printing and Dyeing Co., Ltd. are unwilling to talk much about the market. They only said that the current demand is not very good, but said that it is still early for the so-called peak season of the industry and they need to wait until October to make a judgment. The aforementioned industry analysts said that this year’s off-peak and peak season for dyes is relatively chaotic. The original peak season from March to April has been advanced to February. Although the market has shown no signs of recovery for the time being, expectations for a rise in dyes are still there.
Not only has the textile market been poor during the recent off-season, but also since the end of the year, the production status of printing and dyeing factories has been mediocre and without any bright spots. Especially in the peak season of March and April, it was not as busy as it should be. It was only the backlog of orders from the previous year that pushed the peak, but there was insufficient follow-up on follow-up orders, and the dyeing fee was only moved at the beginning of March. . Under this off-season market situation, printing and dyeing factories lack the motivation to increase prices. The current wave of price increases is likely to be short-lived and will not be reflected in dyeing fees at all.
Entering September
The possibility of marginal improvement in the entire textile and apparel market Still relatively strong
Although the overall performance of the textile market is weak, with the arrival of September, the market actually shows signs of recovery. According to market understanding, autumn and winter fabrics have begun to be launched one after another. In addition to elastic fabrics, down jacket fabrics such as pongee and nylon also have a certain sales volume.
Although there are signs that the entire textile and apparel market is more likely to improve marginally in September, it is still far from previous years. The social inventory of gray fabrics is still very high, and the production enthusiasm of weaving manufacturers is still high. Still recovering. On the other hand, both the upper and lower industrial chains tend to wait for the peak season, but whether they can support prices remains to be verified by the market. It is still because the inventory of gray fabrics is too high, and manufacturers are eager to destock, so it is difficult to eliminate the phenomenon of selling goods at low prices, which suppresses the overall price of gray fabrics in the market. As for dyeing fees, due to the poor inventory of gray fabrics in the early days, many companies offered attractive conditions for dyeing fee discounts. Now, due to the increase in cost-side dye prices, the discounts may be canceled instead of directly increasing the price. For most textile bosses, market trading is still under great pressure. The overall market volume is tight compared with the same period last year. It is difficult to boost the overall market volume. In addition, under the imbalance of supply and demand, Market competition has become more intense, and polarization has become increasingly obvious.
During this period, the textile market has been ups and downs. The frequent rise and fall of raw materials has had a great impact on the orders received by textile companies. Some orders for low value-added products have already faced devastating blows. Affected by the epidemic, order operation risks are high. First, textile factories are hesitant to stockpile raw materials in advance to stabilize quotations and reduce the risk of rising raw material prices; second, there are signs of recurrence of the epidemic, and the risk of delayed shipments and order cancellations is high, making it difficult to accept orders. Later, Market trends still need to be further watched. In the transitional stage between the traditional off-season and the peak season, the market direction depends on the continuation of autumn and winter fabric orders and the start of spring and summer fabric orders.�. </p
