Printing and dyeing companies face double pressure

This year, printing and dyeing companies have clearly differentiated. Due to the rising cost of dyes and the pressure of environmental protection, small and medium-sized dye enterprises have generally been unhappy this year, and large-scale listed printing and dyeing companies have benefited from reshuffle in the industry.

Shaoxing, Zhejiang Province is the main producing area for dyes, printing and dyeing. It is located in the Shengxin Printing and Dyeing Company in the Binhai Industrial Area of ​​Shaoxing. The annual dye cost alone needs to be more than 100 million yuan. According to Fu Linlin, the person in charge of the company, “The price of dyes has risen at the beginning of the year, especially in recent months, such as scattered red 3B100% in disperse dyes and 300% dispersion in black ECTs. Doubled up."

It is understood that under the drive of individual species, the overall increase in the dye industry this year is more obvious. Disperse dyes have increased from 17,000 yuan/ton at the end of last year to 30,000 yuan/ton at present; reactive dyes have risen from 20,000 yuan/ton to current 30,000 yuan/ton. In other words, less than 1 year, disperse dyes and reactive dyes rose up to 76% and 50%, respectively.

According to a reporter from Shaoxing County Printing and Dyeing Association, there is no way for dye companies to raise their prices. This is also the company's own behavior. However, some time ago, more than 200 printing and dyeing enterprises in Shaoxing jointly petitioned, and the recent rise in dye prices has subsided, but it is still not certain that this year's price hike will stop.

“Under normal circumstances, the cost of dyes is basically controlled at about 20% of the cost of printing and dyeing, and printing and dyeing companies still have profit margins.” Fu Jianlin said that as dye enterprises have increased prices, processing fees of printing and dyeing companies cannot rise, which has forced some printing and dyeing in Shaoxing. Enterprises have to take measures to reduce production or stop production.

While raw materials are rising sharply, printing and dyeing companies also need to face environmental pressure. On July 30, the Ministry of Industry and Information Technology issued an announcement on the admittance of printing and dyeing enterprises in 2013, and decided to work together with the Ministry of Environmental Protection to carry out the 2013 access management of printing and dyeing enterprises. While sharply increasing access requirements, the elimination of backward production capacity is also stepping up. In the list of the first batch of eliminated enterprises that was announced by the Ministry of Industry and Information Technology in 2013, more than 130 dyeing and dyeing companies eliminated 2.34 billion meters of backward production capacity.

In the Shaoxing area, many small and medium-sized printing and dyeing companies had to cut production, stop production, and even withdraw from the impact of environmental pressure and dramatic increase in dye prices. The printing and dyeing industry has rapidly shuffled, but large-scale printing and dyeing companies have been able to seize market share and successfully communicate the cost of rising raw material prices to product prices. In the first half of this year, Hangmin’s printing and dyeing products raised prices three times, which to some extent absorbed the pressure of rising costs.

From the perspective of the printing and dyeing industry of the listed companies, the gross profit margin has risen in the same place. In the first half of last year, the gross profit margins of the printing and dyeing industry of Hangmin, Mida and Midea were 20.92%, 4.25% and 9.52%, respectively. In this year's interim report, their respective gross margins have been raised to 21.58%, 7.17% and 14.45%.

The industry believes that with the dramatic rise in dye prices and the tightening of environmental protection policies, the domestic printing and dyeing industry will shrink its production capacity, and large-scale printing and dyeing companies will have stronger profitability. They can increase the price of printing and dyeing products and realize cost transfer. Meanwhile, listed companies are Environmental protection also has advantages. The reshuffling of the printing and dyeing industry is conducive to large-scale dyeing enterprises seizing market share.