Printing and dyeing industry recently handed over the first quarter of 2023 "report card". According to the data of the National Bureau of Statistics, in the first quarter of 2023, the printing and dyeing cloth output of enterprises above designated size in the printing and dyeing industry was 12.491 billion meters, a year-on-year decrease of 0.27%; Operating revenue was 65,336 billion yuan, down 4.18% year-on-year; The total profit was 1.193 billion yuan, down 36.67 percent year-on-year.

It can be seen that the growth pressure of the printing and dyeing industry since the beginning of the year is really not small. So, what are the expectations of printing and dyeing enterprises for future development? When can we usher in the turning point of "bottoming out"?

According to the data of the National Bureau of Statistics, from January to March 2023, the operating income of printing and dyeing enterprises above designated size was 65.336 billion yuan, a year-on-year decrease of 4.18%, and a decrease of 5.35 percentage points compared with January to February. The total profit was 1.193 billion yuan, a year-on-year decrease of 36.67%, and a decrease of 52.62 percentage points compared with January to February; Sales profit margin of 1.83%, 1.07 percentage points lower than the previous year, the lowest level in recent years. The number of loss-making households of 1732 printing and dyeing enterprises above designated size was 787, with a loss of 45.44%, an increase of 6.62 percentage points year-on-year; The total loss of loss-making enterprises was 1.461 billion yuan, up 44.13% year-on-year. In the first quarter, the main economic benefit indicators of the printing and dyeing industry continued to decline, the profit pressure of the industry was still prominent, and the industry loss was still at a high level, but the economic benefit of the industry showed signs of improvement in March.

But in fact, in February this year, the printing and dyeing industry also ushered in a wave of price increases.

There was a loud "rise"

The traditional "gold three silver four" market in the middle and lower reaches of the market has not yet arrived, but some fabric enterprises have received a notice of the price increase of dyeing costs.

The enterprises that announced the price increase of dyeing fees have well-known enterprises such as Zhejiang Huadli Holding Group Co., LTD., Zhejiang Jinheng Printing and Dyeing Co., LTD., Hang Seng Printing and Dyeing Co., LTD., as well as enterprises in the printing and dyeing cluster in Zhejiang Xiuzhou, Tongxiang, Fujian Changle, Shishi and other places.

On February 14, Shantou Jimei Printing and Dyeing Company issued an announcement, decided that from February 15, the processing fee for all kinds of cloth was increased by 500 yuan/ton, and the processing fee for functional auxiliary products and glossy cloth was increased by 1000 yuan/ton on this basis.

On February 6, Pengtu Textile Co., Ltd. announced that from the same day, the dyeing fee of narrow fabric was raised to 9500 yuan/ton, and the dyeing fee of Italian velvet and twill fabric was raised to 7500 yuan/ton.

On February 2, Zhejiang Hang Seng Printing and Dyeing Co., Ltd. issued an announcement that from February 6, the Dutch velvet wide-width fabric dyeing fee was raised to 8500 yuan/ton, the imitation cotton velvet color wool fabric dyeing fee was raised to 6000 yuan/ton, and the dyeing price adjustment of other special process fabrics was separately agreed.

On February 1st, Zhejiang Huadli Textile Printing and Dyeing Co., Ltd. issued an announcement that since February 6th, the dyeing processing fee has been increased by 1500 yuan/ton on the basis of the original price, and the price outside the special process has been increased in the same proportion.

"China Textile News" reporter combed and found that in terms of price increase time, most enterprises are concentrated in early February to mid-February, and some enterprises announced price increases from the end of January. In terms of price increase, the highest price increase is 10,000 yuan/ton, and some summer products (ice silk, etc.) are raised to 9,000 yuan/ton.

Most of the price notice pointed out that due to the rising price of energy such as dye and chemical materials, steam and electricity, labor wages have risen year by year, and investment in environmental protection and safety has become more and more large, printing and dyeing enterprises have been difficult to maintain small profits.

According to the data of the National Bureau of Statistics, from January to December 2022, printing and dyeing enterprises above designated size achieved operating income of 312.526 billion yuan, an increase of 4.42%, and the total profit of 13.27 billion yuan, a decrease of 16.49%.

"The price of steam has increased significantly in these two years." A person in charge of an enterprise in Shantou, Guangdong Province, admitted that the company uses more than 2,000 tons of steam every month, and the increase in this cost alone will cost more than 1 million yuan every year. This is obviously a large expense for many printing and dyeing companies.

Rising prices still keep losing money

The analysis of industry economic operation in the first quarter from the China Printing and Dyeing Industry Association also shows that 787 of the 1732 enterprises on the rules have lost money, with a loss of more than 45%.

It is worth noting that in the first quarter, although the printing and dyeing industry exports showed a certain toughness, the main printing and dyeing products exports in the same period of last year on the basis of a high base still maintained growth, but the export unit price fell significantly, reflecting the current industry export competition intensified.

China Customs data show that from January to March, the export volume of eight categories of printing and dyeing products was 8.08 billion meters, an increase of 11.6%, the growth rate fell 2.5 percentage points from the same period last year; The export value was 7.853 billion US dollars, an increase of 2.25%, the growth rate was 22.64 percentage points lower than that of the same period last year; The average unit price of exports was $0.98 / meter, down 8.38% year-on-year, and the growth rate fell 17.84 percentage points from the same period last year.

The reason, industry analysts pointed out that affected by the complex international situation, the first quarter of the global textile and apparel demand weak, market orders significantly reduced, printing and dyeing industry production capacity can not effectively play, production costs are difficult to pass downstream. In addition, the price of natural gas, electricity, steam and other energy has risen, and the production cost has increased significantly, which has further compressed the profit margin of the printing and dyeing business, resulting in the operating profit of the enterprise has been affected.

Summary of competition in China's printing and dyeing industry: The market is more dispersed and the competition is fierce

From the perspective of the five-force competition model, the printing and dyeing products can meet the sensory needs of consumers in terms of color and pattern, and have high cost performance, and the substitution threat of dissimilar products is less. Among the same kind of products, printing and dyeing products will develop in the direction of intelligence, functionalization and environmental protection, technological update will be accelerated, and the substitution threat of the same kind of products is greater.

The upstream of the industrial chain is mainly enterprises such as blank cloth, dyes, printing and dyeing AIDS, and the upstream bargaining power is moderate on the whole. The number of enterprises in the printing and dyeing industry is large, the market concentration is low, and the degree of product homogeneity is high, the downstream buyers have more choices for printing and dyeing enterprises, and the conversion cost is relatively small.

Article source: China Textile News, Forward network, printing and dyeing learning and exchange