Dyes are rising simultaneously, and the production costs of printing and dyeing factories are high
Switzerland Clariant, a professional chemicals manufacturer, recently announced that due to the continued price rise of major raw materials, it will implement price increases for most of its pigments and dye products, ranging from 5% to 20%. In May 2018 It will take effect on the 1st or according to the terms of the contract. This is also after the price of domestic anthraquinone dyes soared by 10,000/ton, and the multinational dye giants also made a sharp increase simultaneously!
According to data, at the beginning of this year, Clariant had implemented excessive price increases for some of its pigment products. Thanks to this, its sales in the first quarter increased by 7% year-on-year to 1.722 billion Swiss francs. From the perspective of business distribution, its sales growth rate in Asia is high, achieving an increase of 15%.
Dye prices are rising simultaneously, which will have a greater impact on the later dye market and even the entire printing and dyeing industry. At present, dye production companies and printing and dyeing factories are facing huge environmental pressure. Production capacity cannot be fully released, production costs continue to rise, and they are forced to raise prices again and again. In May or even throughout the second half of the year, the effects of environmental protection and the contradiction between supply and demand may help the printing and dyeing industry continue to operate at a high level.
How do downstream fabrics, natural cotton, and printing and dyeing factories respond?
In the context of rising oil prices, labor shortages, and dual-pronged environmental and safety supervision, manufacturers of fabrics, natural cotton, printing and dyeing, etc. that have no say or bargaining power in the lower reaches of the polyester industry chain have been “rising” There was a struggle in the voice. Many factory leaders said that compared with last year, production and operating costs have increased by more than 10%, and profits are getting smaller and smaller.
The production and operating costs of raw materials and other products continue to rise, and in theory, end consumers will foot the bill. However, due to a series of problems such as fierce market competition, overcapacity, consumer disinclination, and inventory backlog, some downstream factories do not dare to transfer production costs rashly. Faced with such a dilemma, the direct response strategy of downstream factories is undoubtedly to increase revenue and reduce expenditure.
The purpose of open source is to increase revenue. The effective way is to increase prices, but price increases cannot simply pass on costs. Factories should continuously improve product added value, technological content, quality, etc., so as to achieve The high quality, high value-added, high value and high price of products are sequentially deferred.
The purpose of throttling is to reduce expenditures. The phenomenon of high energy consumption and low output has always existed in downstream factories. In fact, for these enterprises, there is great room for improvement in terms of mechanization, production process management, and technical processes. Energy conservation and emission reduction, clean production, paying attention to environmental protection, increasing investment in technological innovation, and building core competitiveness are the fundamentals for enterprises to resolve high cost pressures.
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