The proposal to boycott price increases reappears! A new round of dye fee increases has begun! Why do we look so small in the face of price increases?
On April 17, Shaoxing Keqiao Printing and Dyeing Industry Association issued the “Initiative on Jointly Resisting Abnormal and Sharp Increases in the Price of Dyeing and Chemical Materials” to boycott the price of dyeing and chemical materials in the near future. grow rapidly.
One wave has not subsided yet, another wave is coming
In recent years, due to the continuous tightening of environmental protection policies, the textile printing and dyeing industry has suffered a great impact. Printing and dyeing companies with backward production capacity, low profits, and serious pollution have been eliminated from the industry, and the remaining companies also spend a lot of money on environmental protection every year.
Affected by environmental protection policies, the price of dyes has also been rising rapidly in the past two years. Basically every short period of time, we will hear about dyeing materials Price increase news. The reason for this boycott is that the price of dyes and chemical materials has increased too much in the short term, which is beyond the tolerance of printing and dyeing enterprises.
Due to the recent frequent safety production accidents, which have had a greater impact on manufacturers of dye intermediates, the prices of dyes have risen in response.
According to the “Proposal”, since late March, in just one month, the proportion of dyeing and chemical material costs of printing and dyeing enterprises in Keqiao area to processing costs has increased from 25% to 45%, which has had a huge impact on the production and operation of printing and dyeing enterprises.
The “Proposal” believes that although this price increase is partly affected by the tightening of safety supervision, the more reason is that dye and chemical companies are hoarding and exaggerating the safety supervision. influence, causing the illusion of tension in dyeing and chemical products.
Finally, the “Proposal” hopes that printing and dyeing enterprises can unite to resist the unreasonable increase in the price of dyes and chemicals.
Is the boycott useful?
This time’s “Proposal on Joint Resistance to Abnormal and Sharp Increases in Prices of Dyes and Chemical Materials” reminds me of the “Joint Production Suspension Proposal” in the weaving industry in early August last year.
Starting from mid-July last year, the price of polyester filament, the raw material for weaving, began to rise sharply, which had a great impact on the production and operation of weaving companies. In August, weaving associations in Haining, Changshu, Tongxiang, Wujin and other places issued a “Joint Production Suspension Initiative”, hoping that weaving companies would stop production to resist the unreasonable and large price increases of textile raw materials.
The ideal is plump, but the reality is skinny.
But last year’s “Proposal to Suspension of Production” attracted huge attention in a short period of time, but the actual effect was not good. Last year, after the “Proposal to Suspension of Production” was issued, the pace of increase in polyester prices did not slow down. Instead, it tended to intensify. Finally, it continued to rise until October, overdrafting the textile market, and it has not slowed down until now.
(The overdrawn textile market has not yet recovered)
The dyeing fee increase is in progress!
After the environmental protection rectification in the past few years, the printing and dyeing industry has carried out a large-scale survival of the fittest, and the companies that can ultimately survive have certain strengths. Compared with weaving companies at the bottom, printing and dyeing companies have a higher status in the industrial chain. Therefore, they have more room for price adjustment.
In the first weekend after the “Proposal” was issued, the price of dyes and chemicals was not affected to stop its rise. Helplessly, the dyeing factory finally could not bear the pressure of costs and chose to increase dyeing fees.
According to reports, several 10 printing and dyeing companies in Ningbo, Zhejiang Province have recently announced an emergency increase in dyeing fees. The 10 printing and dyeing companies said that due to the doubling of dyes, the costs of dyeing plants have increased rapidly. Since April 26, black prices have increased by 800 yuan/ton, dark colors have increased by 500 yuan/ton, medium-light colors, bleached, and semi-bleached prices have increased by 300 yuan/ton.
On April 20, the Changshu Printing and Dyeing Chamber of Commerce issued a “Recommendation Letter for Increasing Printing and Dyeing Processing Fees” to member companies, suggesting that member companies will uniformly increase dyeing and finishing processing fees starting from May 1, 2019. , the adjustment range is recommended to be increased by 1,000 yuan/ton on the basis of the original dyeing and finishing processing fees.
It can be said that a new round of dye fee increases has arrived!
(Several 10 printing and dyeing companies urgently issued an increase in dyeing fees)
Why do we look so small in the face of price increases?
Whether weaving companies are facing the polyester giants or printing and dyeing companies are facing the dyeing and chemical leaders, they all seem so powerless and insignificant in the face of rising raw material prices.
A helpless proposal
The initiative within the industry to resist the rise in raw materials seems to be gaining momentum.It’s big, but actually has no binding force.
Whether it was the joint production suspension initiative in the weaving market last year or the initiative in the printing and dyeing industry to resist the increase in the price of dyes and chemical materials, they both created a lot of momentum in public opinion. , but when it comes to enterprises specifically, it has no binding force.
But think about it, if we resist the price increase of polyester yarn, can weaving companies stop buying yarn? By resisting dye price increases, can printing and dyeing companies stop buying dyes? Since the company wants to continue production and operation, these basic raw materials should still be bought. With the mentality of buying up and not buying down, you may buy more than normal.
This is the case for downstream companies. For upstream companies, actual product sales will basically not be affected. Since it won’t affect the sales of raw materials, why should we stop raising prices?
Such a proposal is not so much a resistance to the price increases of upstream companies as it is a helplessness that is powerless against reality.
“Learning from famous teachers” price increase
And we can It can be seen that whether it was the price increase of polyester yarn last year or the price increase of dyeing materials this year, upstream companies have given reasons for the price increase. Although the price increase has far exceeded the expectations of downstream companies, for the leading players, every price increase can be said to be “following the example”.
After all, from their perspective, emergencies have indeed caused an increase in production costs, and price increases are understandable. But since prices are going to go up, and downstream people still have to buy, why not go up a little more?
However, what is helpless is that in the face of the price increases of the upstream leaders, downstream companies have no choice but to It seems that there is really nothing more that can be done to issue this weak boycott proposal and gain public attention.
On the evening of April 21, another fire broke out in a chemical company in Dalian, but no casualties occurred.
It is foreseeable that in a short period of time, the string of safety production will not be loosened, and the price of dyeing materials will most likely rise further. Once the dyeing factory cannot bear it, dyeing fees will inevitably rise.
For fabric companies, this round of dyeing fee increases seems to have just begun and is far from over…</p
