At the beginning of September, the news of rising dye prices on the market continued, and the price of disperse dyes has been adjusted upward. In the face of rising dye prices, what choice will dyeing and printing companies make?
Analysis believes that this round of disperse dye prices first came from raw material support. The price of raw materials increases and the demand gradually recovers, and the subsequent increase in dye prices is expected to continue. Relevant data shows that from April to June this year, the domestic cloth output was 3.19 billion meters, 3.24 billion meters, and 3.35 billion meters, which increased month-on-month and decline narrowed year-on-year. In terms of exports, the export delivery value of the textile and apparel and apparel industries from April to June was 20.43 billion yuan, 21.86 billion yuan, and 26.04 billion yuan, respectively, which increased month-on-month and decline narrowed year-on-year. In the second half of the year, with the arrival of the peak demand season, it is expected that dye prices will continue to rise.
In addition, it is worth noting that some listed dyestuff companies pointed out in their semi-annual reports recently that oil price fluctuations also have a greater impact on dye prices. But compared with previous years, this year’s dye prices are still at a low level.
The upward adjustment of the price of dyes in the upstream has caused many dyeing and printing companies to adjust their dyeing fees in response to the increase in production costs. However, whether the price will continue to rise in the future depends on the industry performance during the year, including factors such as the impact of the pandemic, downstream demand, and terminal clothing retail.
In the face of uncertain market demand, industry experts said that regardless of future dye price trends, dyeing and printing companies must always maintain a cautious attitude when purchasing dyes. When purchasing dyes, dyeing and printing companies should adopt small batches and multiple batches to reduce the risk of dye price fluctuations; they can also adopt the “quantity by sales” model, that is, determine the purchase quantity according to the needs of short-term production.
“At present, the most important thing for dyeing and printing enterprises, as well as downstream textile enterprises, is to make efforts to innovate and accelerate transformation and upgrading; the second is to unite, especially dyeing and printing enterprises should take the road of intensive development and enter industrial parks to deal with environmental pressure.” The relevant person in charge of the association pointed out that at present, the world’s major disperse dye manufacturers are in China, so it is impossible to rely on imports in the short term to ease the tight supply of the domestic disperse dye market. It is best for dyeing and printing companies to stock up reasonably according to their own inventory status and demand level, so as not to bring greater cost pressure.