The supply and demand of textile printing and dyeing are on the verge of advancing.

“Since June, the printing and dyeing industry has entered the traditional off-season, industry orders have been reduced, customers’ ability to reduce prices has increased, and the cost of dye prices has continued to rise. The company is not profitable to maintain the start of construction.” August 20, Shaoxing Haitong Printing and Dyeing Co., Ltd. processing business personnel said .

At the same time, domestic dye supply giant Zhejiang Longsheng (600352) (600352) announced its half-year results on the 20th, benefiting from the rising price of dyes, the company’s first-half net profit was 548 million yuan, an increase of 102.64% year-on-year.

"Now that printing and dyeing companies are very difficult to survive, we will go to the Zhejiang Provincial Price Bureau this Friday to communicate the results." Chen Quansheng, secretary general of the Shaoxing County Printing and Dyeing Industry Association, told reporters.

Shaoxing Printing and Dyeing Industry Association recently organized more than 200 printing and dyeing enterprises in Shaoxing, and the League submitted a report on the requirement of anti-monopoly to the Provincial Price Supervision and Inspection Branch. Chen Quansheng stated that he is currently under great pressure.

The anti-monopoly complaint was mainly targeted at the two major dye giants Zhejiang Longsheng and Lantuo (002440, stock it) (002440).

After the Spring Festival this year, the price of disperse dyes soared. The current unit price per ton has risen to 30,000 yuan, double the price of last year. At the same time, the increase in the price of disperse dyes has driven up the prices of other dyes. Some of the biggest gains have tripled in the base last year.

The dyestuffs are soaring. The printing and dyeing industry in Shaoxing still has no bargaining power for upstream suppliers. "Longsheng, clay and other giants are generally the first to increase prices."

According to the personnel of Haitong Printing and Dyeing Company, the company has not been able to buy basic disperse dyes in the market at the price of 25,000 yuan/ton. "Recently, the price has risen five or six thousand or seventy-eight thousand yuan each time, and the increase has been too fast! Can not buy goods."

In 2012, the price of dyestuffs has been detouring at a low level, staying at 15,000 to 17,000 yuan per ton. Since the beginning of this year, the dye products have increased in price. The initial uptrend was relatively mild, rising around 8%-10%. After the second quarter, the increase was even greater. Even if the traditional printing and dyeing industry entered the off-season, the price of dyestuffs remained strong. At present, the price of disperse dyes has reached 30,000 yuan / ton, double the price compared to last year.

According to the Haitong Dyeing and Printing personnel mentioned above, the dyes currently account for nearly 40% of the total cost of printing and dyeing, but this proportion has been more than 20%. Coupled with the increase in environmental protection costs and labor costs, the company’s cost expenditures have soared this year. Although the overall market is relatively good this year, companies cannot make profits at all.

In June of this year, A-stock textile company MIXIN (002034, Shares Bar) (002034) announced that it will own a wholly-owned subsidiary of printing and dyeing business - Huzhou Meixin Dyeing and Printing Co., Ltd. 65% (hereinafter referred to as "Humei Printing" The equity of “) was transferred to the management team with the existing management of Humei Printing at the price of 1.65 yuan per share based on the net assets of RMB 16,486,800 on May 31, 2013.

According to the sales information, in the first five months of this year, Humei lost 10 million yuan in printing. Last year, the company contributed a profit of 4.46 million yuan to Meixinda, which represents a total profit ratio of 27.7%.

Mei Xinda said that the main reasons for the huge losses in Humei Printing: First, the traditional off-season of Humei Printing in the first half of the year; second, the sales revenue of the company decreased in the first half of this year, and the pressure on operating costs was relatively high. Increases in labor and other costs have led to increased operating losses in the first half of the year. Among them, the increase in the cost of dyestuffs has brought tremendous pressure on the company's operations.

Shaoxing County is a gathering place for the printing and dyeing industry. At present, there are more than 200 printing and dyeing enterprises, printing and dyeing processing capacity accounts for more than 1/2 of the total amount of the province, accounting for nearly 30% of the total amount of printing and dyeing above the national scale, and the annual consumption of dyeing and printing industry in Shaoxing County. The material will reach 10 billion yuan.

Even with such a large amount of purchases, Shaoxing printing and dyeing industry still has no bargaining power for upstream suppliers. “Printing and dyeing companies are more concentrated, and giants like Longsheng and Bauxite are generally the first to increase prices. After they raise prices, other small and medium-sized enterprises have followed up.” The above-mentioned Haitong Printing and Dyeing person said, “The printing and dyeing enterprises are very scattered and no one can fight against them. These big upstream companies."

The Shaoxing Printing and Dyeing Industry Association stated in its “Report on Requesting Anti-monopoly” submitted to the Zhejiang Provincial Price Supervision and Inspection Sub-branch: The current price increase of dyestuffs and dyes has greatly exceeded the normal increase of 10% to 200% of the national CPI, which is a standard. Infringement of violence.

Chen Quansheng stated that as a big market for dyes and dyes, the Shaoxing Printing and Dyeing Association hopes to unite printing and dyeing companies to cope with the rising price of dyes. It is hoped that the prices will be returned in a reasonable way so as to benefit the overall long-term development of the upstream and downstream industries.

The two giants reconciled the two leading companies from competition to cooperation, through patent protection, limiting the expansion of small and medium-sized production capacity, and gradually expanding their own right to speak. According to the information of two major dye giants Zhejiang Longsheng and Suitu Shares 2012 announcement, Zhejiang Longsheng last year Tutu shares lawsuits against the company's patent infringement. Until December last year, the two parties reached a settlement of lawsuits and claimed that they plan to cooperate on mutual procurement of raw materials, product supply, etc., and build cooperation platforms such as product supply, technology exchange, technology sharing, and achievement conversion. . A number of printing and dyeing companies pointed out that the dye supply industry has become a duopoly.

In 2012, Zhejiang Longsheng had a production capacity of 70,000 tons of reactive dyes, 44,900 tons of reactive dyes, a product gross margin of 19.94%, and a 30,000 tons of reactive dyes, which could increase to nearly 40,000 tons this year. The two giants’ total production capacity accounts for 65% of the domestic dye supply.

The reporter was informed that many companies in the printing and dyeing industry pointed out that at the end of 2012, Longsheng and Bauxite were the two leading companies from the competition to cooperation, through patent protection, limiting the expansion of small and medium capacity, their right to speak gradually expanded, the oligopoly of the dye industry This is the main driver of soaring dye prices this year.

The reporter discovered from Zhejiang Longsheng's semi-annual report that the company’s overall gross profit for sales climbed from 19.2% last year to 26.07% in the first quarter of this year and 27.43% in the second quarter. The overall gross profit of alumina shares also rose from 24.27% last year to 26.4% in the first quarter of this year.

According to the prediction of the shares of the company, the company’s net profit for the period from January to June this year will be between 207 million and 235 million yuan, a year-on-year increase of 50%-70%.

Orient Securities analyst Ruan Ruijie believes that stricter environmental protection policies are also important reasons for changing the pattern of supply and demand. At present, the relevant departments have strict environmental protection measures for dyestuff companies, and dye wastewater is difficult to handle because of its special nature, requiring 4-5 steps. Some researchers estimated that the current cost of wastewater treatment per ton of disperse dyes is around 750 yuan, the cost of reactive dyes is around 400 yuan, and the investment in fixed assets also needs to be more than 10 million yuan. These costs further limit the small and medium capacity.

Dye companies can also pass on dye costs by other means. According to Ruijie Rui, apart from the higher cost of dyes in printing and dyeing enterprises, coal prices have always accounted for 30-40% of the total cost. From the beginning of last year to the present, coal prices have fallen by 25%. In addition, some strong printing and dyeing companies The cost shift can be achieved by increasing the price of printing and dyeing.

However, the above-mentioned personnel of Haitong Printing and Dyeing Company stated that it is impossible to pass on the cost to the customer. Especially in the off-season since June, order customers can do very well without pressing prices.

According to public information from Shaoxing County, in the first five months of this year, the processing volume of printing and dyeing cloth in the county fell by 1.5% year-on-year, and the output value of printing and dyeing industry increased by 13.8%. However, in May, 1.717 billion meters of printing and dyeing fabrics were processed, a month-on-month decrease of 0.6%, and the first month of the year since the beginning of the year, the processing volume decreased for the first time in a chain, indicating that with the arrival of the traditional off-season from June, orders for the printing and dyeing industry will decrease.

** Since the beginning of the month, the traditional peak season of the printing and dyeing industry is approaching. Printing and dyeing companies hope to earn money this year's peak season. The reporter saw from Zhejiang Longsheng's semi-annual report that the company expects that the performance of the company will increase by more than 100% from January to September this year. Its securities affairs official told reporters that the price increase of the product is a sales strategy set by the sales company and the dyestuffs The prices in the third quarter and beyond are currently difficult to predict, but the company's forecast for performance increase is based on the increase in sales of traditional peak season products.