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Sales plummeted
Gao Guanghong, director of the Department of Propaganda of Dalian Dyeing Chemical Industry Co., Ltd., which produces dyes, spoke to reporters. He said that countries such as Europe and the United States have imposed restrictions on the import of textiles from China, which has greatly reduced the number of Chinese textile exports, and has led to a chain reaction among related industries. This has led to a decrease in the demand for dyes in the market. Some dye manufacturers have accordingly stopped production or reduced production.
Gao Guanghong said that the dyestuffs market of Dalian Dyeing Chemical Company is mainly located in South China and East China. They sell about 1,000 tons of dyes for green dyes every month, and the market conditions are relatively stable. Since Europe and the United States set limits, the dye market demand has been significantly reduced. The current monthly sales volume is about 500 tons, a decrease of about 50%. Due to the decrease of market share, the competition among the same industry is fierce. In order to minimize inventory and increase market share, they have to take measures such as price cuts. As a result, they cause product losses and pressure on companies to increase.
The sales of dyestuffs at the Shanghai Dyestuff Factory also decreased significantly. In May, sales were only 56.6 tons, a decrease of 22.78% year-on-year. The main product, brown BR, decreased by 22.91% year-on-year; the “three browns†(brown G, brown GG, and brown RG) decreased by 44.23% year-on-year; the gray BG decreased by 33.05% year-on-year.
Meng Chun, deputy general manager of Xuzhou Kaida Fine Chemicals Co., Ltd., Li Zhigeng, secretary of the party committee of Shanxi Linfen Yinhua Group, and Song Huiyuan, assistant to the general manager of Qingdao Shuangtao Fine Chemicals (Group) Co., Ltd., also reported to the reporter that this time, Europe and the United States have applied to Chinese textiles. Set limits, so that the company's sales began to decline sharply from May, causing difficulties for the production and operation of enterprises.
Investment costs difficult to recover
After China's accession to the WTO, and especially on January 1, 2005, the global textile trade quota was abolished, and China's textile output increased, thus stimulating the simultaneous development of the dye industry.
It is precisely for this reason that Shanghai Dye Chemical Factory rushed out of part of its capital to renovate old equipment in the second half of 2004 under extremely difficult corporate funding conditions. For example, the dye-smelting unit has been expanded, homogenizers for dye post-processing, flash dryers, etc. have been newly added, and preparations are being made for the dye market.
However, since the United States and Europe set limits, the dyestuff industry, which has just been strengthened, has encountered uncertainties and has caught the Shanghai dye factory off guard. The most worried about the factory's manager is: Can the cost of their own investment be recovered?
Take emergency response measures
In view of the current uncertainties in the printing and dyeing industry, domestic dyestuff enterprises have taken urgent measures to deal with them.
Shanghai dye factory's current demand for customer supply is more to consider from the safety of funds. For example, customers in the Guangzhou area recently demanded an increase in the amount of brown BR dyes in the area. The dyeing plant rejected the customer's request in view of fund safety. In June, some products were discontinued.
On the one hand, Qingdao Shuangtao Fine Chemical (Group) Co., Ltd. pays close attention to the development of this incident, and pays particular attention to whether it will impose quota restrictions on Chinese-made wool textile products and high-grade wool products so as not to cause sales of acid dyes to the company. Big impact. On the other hand, efforts are made to explore the potential of the company, further strengthen management, minimize production costs, and strive to minimize losses. At the same time, the development of new products will be further strengthened to diversify the company’s product sales and make up for losses through the increase in sales of new products. Shanxi Linfen Dyeing and Chemical Group will take more foreign trade to meet this challenge.
Dyestuffs under the pressure of textiles "limited"
The largest user of dyes is the textile industry, which accounts for 90% of dye production. In recent years, China's dye production has grown at an average annual rate of 20.87%. In 2004, the dye production reached 598,300 tons, ranking first in the world, accounting for about 60% of the world's dye production. China is not only the world's largest dye-producing country, but also the world's largest exporter of dyes. The export volume of dyes accounts for about 25% of the world's dyes. It is understood that there are more than 400 large and small dye enterprises in China. However, since May, the United States and Europe have imposed restrictions on my textile products, which has caused many adverse effects on dye companies.