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Zhejiang'S Two Major Dyestuff Giants Move From Competition To Cooperation

2013/8/21 19:11:00 34

Dyestuff Industry Dyestuff Enterprise Dyestuff Price Printing And Dyeing Industry

"since June, < a href=" //www.sjfzxm.com/news/index_c.asp "> printing and dyeing industry < /a > into the traditional off-season, the industry orders have been reduced, the customer's ability to lower prices has increased, while the dye price and cost continues to rise, so the company is not making money in its construction. In August 20th, Shaoxing Haitong printing and dyeing Co., Ltd. said processing personnel. 
 at the same time, the domestic dye supply giant Zhejiang Longsheng 20 announced half yearly results, benefiting from the dye volume and price rise. The company's net profit in the first half of this year was 548 million yuan, up 102.64% over the same period last year. 
 "now a href=" //www.sjfzxm.com/news/ "> printing and dyeing enterprise < /a > survival is very difficult. We will go to Zhejiang Price Bureau to communicate with us this Friday. Shaoxing County printing and dyeing industry association secretary general Chen Quansheng told reporters. 
 recently, the Shaoxing printing and dyeing industry association organized more than 200 printing and dyeing enterprises in Shaoxing. The League submitted a report on antitrust requirements to the provincial price supervision and Inspection Bureau. Chen Quansheng said he was under great pressure. 
 this antitrust complaint is mainly aimed at the two largest dye giants of A shares, Zhejiang Longsheng and run earth shares. 
After the Spring Festival this year, the price of disperse dyes has soared. At present, the unit price per ton has risen to 30 thousand yuan, double the price of last year's P. Meanwhile, the rising price of disperse dyes has led to rising prices of other dyes. Some of the biggest gains have doubled over the past three years. 
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 > a href= "//www.sjfzxm.com" > Shaoxing printing and dyeing > /a > industry still has no bargaining power on upstream suppliers. "Longsheng, such as leap soil and other giants generally take the lead in raising prices." 
 according to Haitong dyeing and printing company personnel, the company currently has no basic disperse dyes in the market at the price of 25000 yuan / ton. "Every time the price is raised by five thousand or six thousand or seven thousand or eight thousand, it is too fast to buy goods." 
 2012, the price of dyes has been kept low for 15000 yuan to 17000 yuan per ton. Dye products have risen in price since the beginning of this year. At first, the rally was more moderate, or around 8%-10%. After the second quarter, it rose more and more. Even if the traditional printing and dyeing industry entered the off-season, the price of dye remained strong. At present, the price of disperse dyes has reached 30000 yuan / ton, double the price of last year. 
 according to the above Haitong printing and dyeing personnel, the dye has occupied nearly 40% of the printing and dyeing cost, and this proportion has been more than 20%. With the increase of environmental costs and labor costs, the cost of the company has increased significantly this year. Although the overall market is relatively good this year, enterprises are simply unable to make profits. 
 in June of this year, A shares "a" target= "_blank" href= "//www.sjfzxm.com/" > textile > /a > Enterprise announced that the shareholding of Huzhou's Mei Xinda dyeing and Printing Co., Ltd., 65% (hereinafter referred to as "Lake Mei printing"), was wholly owned by its wholly owned subsidiary of printing and dyeing business. It was transferred to the management team with the current management level of Hu Mei printing as the basis, based on the net assets of 16 million 486 thousand and 800 yuan in May 31, 2013 and 1.65 yuan per share. 
The sale information of indicates that in the first 5 months of this year, Hu Mei printing lost 10 million yuan, while last year, the company made a profit of 4 million 460 thousand yuan for Mei Xinda, accounting for 27.7% of its total profit. 
 Mei Xinda said that the main reasons for the huge losses of Hu Mei printing were: first, the traditional low season in the first half of the year; two, in the first half of this year, the sales revenue of the company declined, and the pressure on operating cost was greater. The cost of dyeing and chemical materials and labor increased, which led to a loss in the first half of the year. Among them, the rising cost of dyes and chemicals has brought great pressure to the operation of the company. Shaoxing county is a gathering place for printing and dyeing industry. At present, there are more than 200 printing and dyeing enterprises. The printing and dyeing processing capacity accounts for more than 1/2 of the total province's total, accounting for nearly 30% of the total printing and dyeing volume above the national scale, and the dyeing and printing industry in Shaoxing County consumes 10 billion yuan annually. 
 even in such a scale, the printing and dyeing industry in Shaoxing still has no bargaining power over upstream suppliers. "Printing and dyeing enterprises are more concentrated, such as Longsheng and" leap earth "and other giants generally take the lead in raising prices. After they raise prices, other small and medium-sized enterprises will go up. The Haitong printing and dyeing people said, "printing and dyeing enterprises are very scattered, no one can fight against these upstream enterprises." 
 > the Shaoxing printing and dyeing industry association wrote to the Zhejiang provincial price supervision and inspection sub bureau "the report on antitrust demands": at present, the magnitude of the price increase of dyes and dyes has greatly exceeded that of the normal growth rate of 10-20 times of the national CPI, which is a standard violation of violence. 
 Chen Quansheng said that as a large market for dyestuff, Shaoxing's a href= "//www.sjfzxm.com" > printing and dyeing Association < /a > hopes to unite the printing and dyeing enterprises to cope with the rising price of dyes. We hope that a reasonable price return will be conducive to the long-term development of the upstream and downstream industries. 
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 > the two giants conciliation 
 two leading enterprises from competition to cooperation, through patent protection, have limited the expansion of small and medium capacity, and their right to speak has gradually expanded. 
 according to the 2012 announcement information of the two major dye giants Zhejiang Longsheng and intercontinental stock, Zhejiang Longsheng prosecuted the patent infringement of the company last year, until December last year, the two sides reached a lawsuit settlement, and claimed that they would cooperate with each other to purchase raw materials, product supply, and build a cooperation platform for product supply, technology exchange, technology sharing, and achievement transformation. Many printing and dyeing enterprises pointed out that the dye supply industry went to duopoly. 
 2012, Zhejiang Longsheng reactive dye production capacity is 70 thousand tons, producing reactive dyes 44 thousand and 900 tons, gross profit margin of products is 19.94%, and leap earth shares reactive dye production capacity of 30 thousand tons, this year can increase to nearly 40 thousand tons. The total capacity of the two giants accounts for 65% of the domestic dye supply. 
 reporters learned that a number of enterprises in the printing and dyeing industry pointed out that by the end of 2012, Longsheng and two leading enterprises of the leap earth had moved from competition to cooperation. By patent protection, the expansion of small and medium capacity has been limited, and their discourse power has gradually expanded. The oligopoly pattern of the dyestuff industry is the main promoter of the surge in dye prices this year. 
 reporters from Zhejiang Longsheng semi annual report found that the gross profit of the company's gross sales increased from 19.2% last year to 26.07% in the first quarter of this year, reaching 27.43% in the second quarter. The gross sales margin of intercontinental shares increased from 24.27% last year to 26.4% in the first quarter of this year. 
 according to the performance announcement of the company, the net profit of the company will be between 207 million yuan and 235 million yuan in 1-6 months, up by 50%-70% compared with the same period last year. 
 Yu Ruijie, an analyst with Orient Securities, believes that stricter environmental policy is also an important reason for changing the pattern of supply and demand. At present, the departments concerned are strict in environmental protection measures for dyestuff enterprises, and dye wastewater treatment is very difficult due to its particularity. It requires 4-5 steps. Researchers have estimated that the current treatment cost per ton of disperse dye wastewater is about 750 yuan, and the cost of reactive dye treatment is about 400 yuan, while fixed assets investment must also be more than ten million. These costs further restrict small and medium capacity. And dye enterprises can also pass on other ways to dye costs. According to Yu Ruijie analysis, besides dye accounts for higher cost of printing and dyeing enterprises, coal prices have also accounted for 30-40% in total cost, and coal prices fell by 25% at the beginning of last year. In addition, some strong printing and dyeing enterprises can achieve the transfer by raising the price of printing and dyeing. 
 but the above a href= "//www.sjfzxm.com" > Haitong printing and dyeing < /a > personnel said that it is impossible to transfer the cost to customers, especially in the off-season since June, it is very good for order customers to keep their prices down. 
 according to the public information of Shaoxing County, in the first 5 months of this year, the printing and dyeing processing volume of the county decreased by 1.5% compared with the same period last year. < a href= "//www.sjfzxm.com" > printing and dyeing industry < /a > output value increased by 13.8%. But in May, 1 billion 717 million meters of dyed fabrics were processed, and the ratio fell by 0.6%. The monthly processing volume fell for the first time since the beginning of the year, indicating that with the arrival of the traditional off-season in June, the order volume of printing and dyeing industry will be reduced. 
Starting from P August and September, the traditional peak season for printing and dyeing industry is coming. Printing and dyeing enterprises hope to make money in the busy season this year. Reporters from Zhejiang Longsheng semi annual report, the company expects to grow by more than 100% in 1-9 months this year, its securities affairs department told reporters that the product price increase is the sales strategy set by the sales company, and the price of dyestuff in the third quarter and beyond is difficult to predict at present. However, the company's performance forecast is based on the increase of sales volume in the traditional peak season.