Dye prices have skyrocketed, and downstream discontent resists

Recently, due to dissatisfaction with the skyrocketing price of dyes, the Shaoxing Printing and Dyeing Industry Chamber of Commerce took the lead in issuing a proposal calling on Shaoxing printing and dyeing enterprises to boycott the products of chemical raw material enterprises led by Longsheng Group.


Since 2013, the price of dyes has risen continuously. Industry insiders said that although enterprises and relevant associations hope that all parties will join forces to improve their bargaining power with upstream enterprises, due to problems such as the dispersion and small scale of enterprises, it is currently impossible to fully reach a consensus.


Chen Quansheng, secretary-general of Shaoxing Keqiao District Printing and Dyeing Industry Association, said that in June this year, the Keqiao District Industrial Printing and Dyeing Association had led the action of enterprises to boycott dye price increases, and there has been no effect so far. In August last year, Shaoxing Printing and Dyeing Industry Association organized more than 6 printing and dyeing enterprises to sue the two dye giants Zhejiang Longsheng (8, SH) and Leap Earth (200, SZ) monopoly, the government department investigated because there was no evidence and no results, "printing and dyeing enterprises are very difficult to survive, in the first half of this year, all printing and dyeing enterprises in Keqiao District made more profits, not as much as Longsheng Group, and according to the current situation, dyes will further increase prices."


Dye prices skyrocketed

Shaoxing is a gathering place for the printing and dyeing industry in Zhejiang Province, and a report by Shaoxing Daily in March this year showed that there are hundreds of printing and dyeing enterprises in the area, and the printing and dyeing processing capacity accounts for more than 3/1 of the total amount of printing and dyeing in Zhejiang Province, accounting for nearly 2% of the total printing and dyeing above the national scale.


Even so, the Shaoxing printing and dyeing industry still has limited bargaining power for upstream suppliers. "Raw material enterprises are relatively concentrated, and several giants such as Longsheng and leap soil occupy most of the market share." Chen Quansheng said, "In contrast, printing and dyeing companies are very scattered, and no one can compete with these upstream large enterprises. ”


According to Chen Quansheng, dyes are the main raw materials of printing and dyeing enterprises, and domestic large-scale dye enterprises are mostly concentrated in Jiangsu and Zhejiang, and only Zhejiang Longsheng, leap earth and Hangzhou Jihua 3 dyeing and chemical enterprises account for more than two-thirds of the national dye market. In the past, about 90% of the dyeing materials used by printing and dyeing enterprises in Keqiao District came from these three enterprises. The price of dyes has skyrocketed, and printing and dyeing companies can only respond passively.


It is reported that after the Spring Festival this year, the price of disperse dyes soared, doubling compared with last year. The rise in the price of disperse dyes has led to an increase in the price of other dyes, and some varieties have tripled the base last year. According to the "Tiantian Business News" report, in order to cope with the rising cost of dyes, around the Spring Festival, Shaoxing local printing and dyeing enterprises raised the price of dyeing, from March 3, more than 3 knitting printing and dyeing enterprises in Binhai, Lizhu, Lanting and other places generally increased the printing and dyeing processing fee by 1%~20%.


Before 2012, the price of dyes as raw materials for printing and dyeing has been hovering at a low level, staying at 15000,17000 yuan to 2013,1 yuan per ton. In 7, the price of domestic dyes rose by more than 3%. Among them, the average price of mainstream varieties of disperse dyes rose from 3,3 yuan / ton at the beginning of the year to 5,94~12,105 yuan / ton at the end of the year, an increase of 88.2% ~ 3.5%; The average price of reactive dyes also increased from about 3,6 yuan / ton to 75,80 yuan / ton ~ <>,<> yuan / ton, an increase of <>% ~ <>%.


The Chamber of Commerce in the Printing and Dyeing Industry took the lead in boycotting


"The industry has overcapacity and increasingly strict environmental protection standards, and printing and dyeing companies can slowly transform and adapt, but the skyrocketing price of dyeing materials has compressed the originally small profits." The boss of a veteran printing and dyeing company in Keqiao District said that since the beginning of this year, most printing and dyeing companies have also increased their dyeing fees, but the increase is still lower than the increase in dye prices, and the profits generated by the increase are completely pocketed by the dye factory.


As a large market for dyeing materials, the purchase volume of the entire Shaoxing printing and dyeing enterprise can account for 40%~50% of the output of several enterprises such as Longsheng and leap soil. Shaoxing Printing and Dyeing Association hopes to unite printing and dyeing enterprises to cope with the rise in dye prices. It is hoped that the price will return to a reasonable price to facilitate the overall long-term development of the upstream and downstream of the industry.


Shaoxing Printing and Dyeing Industry Association organized more than 200 printing and dyeing enterprises in Shaoxing to jointly submit a report to the Zhejiang Provincial Price Supervision and Inspection Sub-Bureau, mainly targeting the two A-share dye giants Zhejiang Longsheng and Leap Earth Shares. After joint investigation by the Zhejiang Provincial Price Bureau, the Economic and Information Commission and other departments, it was rejected because no concrete evidence could be found. Relevant people from the Keqiao Development and Reform Bureau also revealed to the "Daily Economic News" reporter that at that time, the Zhejiang Provincial Price Bureau interviewed several enterprises such as Longsheng and the printing and dyeing association, demanding reasonable pricing, but did not find evidence of monopoly.


The raw material giants have benefited a lot


Compared with the difficulties of printing and dyeing enterprises, Shaoxing's two major raw material giants, Zhejiang Longsheng Group and Leap Earth Co., Ltd., have benefited from the continuous rise in the price of dyeing materials. Zhejiang Longsheng half-year report shows that the net profit attributable to shareholders of the company in the first half of 2014 was 15.42 billion yuan, compared with 5 million yuan in the same period of the previous year, an increase of 47.181% year-on-year. According to the statistics of Oriental Fortune Connect, the gross profit margin of Zhejiang Longsheng has increased from 60.26% in the first quarter of last year to 07.40% in the first half of this year, and the net profit margin has also increased by 08.14 percentage points during the same period, from 27.6% to 35.20%. Among them, in the dye business, Zhejiang Longsheng semi-annual report shows that the gross profit margin of the business increased by 62.13 percentage points year-on-year, reaching 89.44%;


For the situation reported by printing and dyeing enterprises, on September 9, the reporter called the secretary of Longsheng Group, and the other party said that Yao Jianfang, the secretary of the group, was currently on a business trip and could not respond to relevant information immediately. On September 12, the reporter went to Daoxu Town, Shangyu City, Shaoxing, where Longsheng Group is located, and relevant personnel of Longsheng Group said that all media interviews and contacts were handled by Mr. Yao, and his people were still on business trips. Later, the reporter called Yao Jianfang again, and the other party said that he would not accept telephone interviews, and publicly replied that he still had to wait for the end of his trip.


Industry insiders believe that as the country's attention to environmental protection continues to strengthen, especially the increase in the rectification of high-pollution industries, the situation of reducing production and limiting production of enterprises will continue to appear, and it is more likely that dye prices will maintain an increase this year.

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