On December 28, the price of dispersed black ECT 300% was raised to 40 yuan/kg, and other dispersed products were raised simultaneously. The specific prices are as follows: (Unit: yuan /kg)
As soon as this news came out, downstream companies shouted: “The dye has gone up. It’s been a year!” News about the increase in dye prices in 2017 continued to spread, and the intervals were not long, giving the impression that the increase in dye prices had indeed increased for a year.
As can be seen from the table, the price of disperse dyes increased throughout 2017 5 times, an average of one increase every two and a half months, very frequent. In 2017, the annual increase was as high as 25%-37% compared with 2016, and prices increased significantly. Data proves that disperse dyes have been rising in price in 2017, and the price of disperse black ECT 300% has exceeded the 40,000 yuan mark.
This year, dye companies have been affected by environmental protection regulations. The supply of dyes in the dye market has been tight and costs have increased. Therefore, dye prices have risen many times. Next, let’s take a look at the third-quarter profits of dye giants Longsheng and Runtu. Longsheng’s profit was 1.872 billion yuan, a year-on-year increase of 31.429%; Runtu’s net profit was 640 million yuan, a year-on-year increase of 45.3915%. Data shows that Longsheng and Runtu’s profits in the third quarter of this year were relatively good, and they were not affected by environmental protection regulations. However, in Shaoxing, an area where dye companies are concentrated, many small businesses have been shut down due to environmental protection rectification. These small businesses have been greatly affected, and the situation is not optimistic.
The rise in dye prices will directly affect printing and dyeing companies. This year, dye prices have been adjusted several times, and the dyeing fees of printing and dyeing factories have also increased accordingly. The issuance of price increase notices has caused panic among downstream weaving companies and traders. It is said that today’s dyeing factories are all “big men”, because they raise prices when they say they will, and they are full of confidence.
Data show that from January to October 2017, the output of printed and dyed fabrics by printing and dyeing enterprises above designated size was 464.76 meters, an increase of 6.36% compared with the same period in 2016, and the growth rate increased by 4.83 percentage points compared with last year. In terms of output, overall output has increased this year and sales are good. Looking at the profitability, the operation quality remains stable, and the printing and dyeing enterprises above designated size achieved a main business income of 3,440.49 yuan, an increase of 12.91% over the same period in 2016; a total profit of 170.26 yuan, an increase of 14.67% over the same period in 2016. Although the printing and dyeing factories have been temporarily closed due to environmental protection rectification this year, the environmental protection rectification has also gradually promoted the transformation and upgrading of the entire industry, thus improving the profitability of the company.
Although data shows that printing and dyeing companies are still making profits Growth trend, but judging from many small printing and dyeing enterprises, the situation is not optimistic. During the several price increases of dyes this year, printing and dyeing companies have not adjusted their dyeing fees. Since July and August, dyeing fees have been stable. Therefore, many companies have digested the rising costs themselves. Coupled with environmental protection forcing equipment to be updated and upgraded, cost pressure is rising, and printing and dyeing companies are not having an easy time.
What downstream companies are most concerned about is whether dye prices have risen and whether dyeing fees will rise. From January 1, 2018, the environmental protection tax will also be officially implemented. The cost of strengthening environmental protection transformation and upgrading for printing and dyeing enterprises will continue to increase. Environmental protection rectification will still be the highlight in 2018. Printing and dyeing companies may find it difficult to digest this dye price increase, and may make appropriate adjustments to dyeing fees at the appropriate time. The above is only the editor’s personal opinion. The editor will continue to follow up on the dyeing fees in 2018.
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