Annual inventory | Top Ten Keywords in the Fabric Printing and Dyeing Industry in 2018
In 2018, the balance has been insufficient, and it is time for us to review the hot events in the fabric industry this year.
In this year, the fabric industry sang the "Song of Ice and Fire". In the first half of the year, the fabric market was strong, and many companies were actively thinking about it, further accelerating the pace of overseas deployment, consolidating and expanding the competitive advantage of the industry, and more and more fabrics. The company pays attention to technology research and development and innovation, and increases the added value of products... But in the second half of the year, the industry has entered the “falling event”, and the market has frequently experienced “cooling down” signals such as slower product price increases, lower turnover, and production orders. The downturn of the big environment superimposed a series of "black swan" incidents such as Sino-US trade friction, making the fabric market in the second half of the year difficult.
In this year, the prices of raw materials such as environmentally-friendly heavy pressure, dyeing and chemical materials, rising labor costs, weak brand innovation, and difficult financing have once again concentrated in the printing and dyeing industry. Most printing and dyeing companies are seeking development in adversity. Some enterprises It’s hard to get out of the way, and a few companies are hard to leave.
In order to find a way to crack, the industry and enterprises work together to actively promote industrial restructuring, innovation and upgrading, so that the industry is moving towards a more environmentally friendly, efficient and sustainable direction.
Environmental tax to
Proactively upgrade the survival of the fittest
On January 1, 2018, China's first green taxation target for environmental protection - the "Environmental Protection Tax Law of the People's Republic of China" was officially implemented, in lieu of the implementation of the sewage charging system for nearly 40 years. According to the tax law, the environmental protection tax is declared on a quarterly basis. Therefore, from April 1 to April 15, many fabric companies ushered in the first levy.
According to the "Environmental Protection Tax and Taxation Schedule", the lower limit of the tax on environmental protection tax is: 1.2~12 yuan per pollution equivalent of air pollutants; 1.4~14 yuan per pollution equivalent of water pollutants; 5 yuan per ton of solid waste according to different types 1000 yuan range, including hazardous waste of 1,000 yuan per ton; industrial noise according to the number of decibels, according to the monthly payment of 350 yuan ~ 11200 yuan. The tax limit is not more than 10 times the minimum standard.
“Environmental tax accounts for a relatively low proportion of taxes paid by enterprises, generally less than 1%, so it does not constitute the main burden of enterprises. After the “fee-to-tax reform”, it has little impact on the cost burden of enterprises.” General Manager of Shaoxing Yongyao Textile Co., Ltd. Lin Xueying said that it is easier to talk about “fee-to-tax reform”: “The purpose of collecting environmental protection tax is to encourage enterprises to reduce pollution. As a company, we should actively respond to the government’s call.” However, some companies have frankly stated that after “fee-to-tax reform”, the company The operating costs are still showing a certain increase. Zhai Yunhai, deputy manager of the development and design department of Zhejiang Babe Textile Co., Ltd. told reporters that after the “fee-to-tax reform”, due to the increase in sewage disposal projects, the number of funds paid by enterprises is still more than before. "However, in general, companies can afford, and the problem is not big. In order to ensure the interests of downstream customers, the company's product prices have not risen."
Editor's comment: Because the "environmental tax" is a fixed tax rate, that is, more emissions, more emissions, less emissions and less. Therefore, the difference in environmental tax burden will bring about differences in product prices. The environmental protection tax is forced to reduce emissions and fulfill environmental responsibility by “survival of the fittest”, thus promoting enterprises to promote product transformation and upgrading, and develop higher value-added, green and low-carbon products.
Increase in profit shrinkage
The fierceness of dye prices this year is staggering. On April 2nd, international dye giant Huntsman issued a price increase notice, and the new price policy took effect on April 8. On the same day, global chemical supplier Kemira raised the price of dye products by 15% to 25%, and the price increase will take effect from April 15. At the same time, the price of domestic dye enterprises rose again. From April 10th, the price of disperse dyes increased by 3,000 yuan/ton per ton, rising to 53,000 yuan/ton, up 77% from the end of last year.
The industry generally believes that this price increase is mainly limited by the pressure from environmental protection. Domestic dye production bases are limited due to environmental reasons, some small and medium-sized dye production plants have been discontinued, and dye supply has suffered unprecedented pressure. In addition, as the global textile industry improves and downstream printing and dyeing enterprises are in the peak season, the contradiction between supply and demand in the dye market is further aggravated.
The trend of rising prices of dyes has obviously brought about no small impact on downstream enterprises. Qiu Jianxia, chairman of Zhongcheng Printing and Dyeing Co., Ltd. said that this year's business is really good, and all the workshops are working hard to produce. Since the beginning of the year, the company's dyeing fee has only been raised once, with an increase of 5% to 6%. “Dyeing fees have to go up, and considering the acceptance of customers, we don’t dare to go up too much. The increase in dyeing fees is far less than the increase in dyes.” Qiu Jianxia said, “Although this year’s business is better than in previous years. Hot, but the profit margin is shrinking."
In addition, in response to the rising price of dyes, some insiders revealed that in order to balance the cost of expenditure, the purchase of textile auxiliaries in some printing and dyeing enterprises will be reduced.
Editor's comment: According to industry statistics, due to the repeated rise in the price of dye companies, the comprehensive cost of printing and dyeing enterprises has increased by 6% to 7% year-on-year. In addition, as printing and dyeing companies' investment and spending on environmental protection continue to increase, dye prices continue to rise, and the loss in the second half of this year will further expand. Although the price increase of dyes mainly depends on the supply of upstream raw materials, the acceptance and price transfer ability of downstream printing and dyeing enterprises is also the focus of the market and the problems that dye companies need to consider.
Reduce losses and shrink industry
On March 16, Fujian Zhonghe Co., Ltd. announced that in order to improve the efficiency of major asset restructuring, the company intends to publicly list and sell the company's textile printing and dyeing plate assets, including Fujian Zhonghe, etc., after the board of directors reviewed and approved. The equity of the five subsidiaries, and the non-equity assets such as land, machinery, equipment, inventory, and receivables related to the textile printing and dyeing business, the listing price is planned to be positioned at 1 billion yuan.
On May 11, the group issued another announcement. Based on the increasingly thin profit of the dyeing and finishing segment and the low bargaining power of the industry, the company's textile printing and dyeing segment was completely shut down in order to reduce costs and expenses. At this point, the printing and dyeing giants who have served seven famous wolves, nine animal husbands, Jinba, Iger, and pure, exceptional, Zara and other famous brands officially bid farewell to the printing and dyeing industry.
It is understood that in the first half of this year, the operating income of Zhonghe's textile printing and dyeing business dropped by 30% year-on-year, and its revenue decreased from 232 million in the same period of last year to 82.45 million, accounting for a decline from 50% to 20%. Industry insiders said that the pressure on environmental protection and cost is one of the biggest difficulties for textile and garment enterprises. Zhonghe has also been affected by the same impact, especially the chemical products such as dyes and chemicals and the rising cost of the company have caused the cost of the enterprise. Under greater pressure, it can be said that Zhonghe's operation is mainly dependent on the direction of the macro environment and industry situation.
Editor's comment: The data shows that the printing and dyeing industry has basically maintained a stable operation in 2018. The main business income, investment, export and other economic indicators are expected to maintain growth, but the downward pressure is still relatively large, while the price of dyed materials and the implementation of the new environmental protection law are implemented. It also increases the company's operating costs. Under the difficult problem of finding effective solutions, enterprises can speed up the exit of inefficient assets in the textile printing and dyeing business through opportunistic replacement and transfer, which is an effective way to reduce the amount of losses.
The season is not prosperous
Production, sales and cooling
Since the third quarter of this year, the Chinese fabric market has frequently experienced “cooling down” signals such as slower product price increases, lower transaction volumes, and revolving production orders.
China·Keqiao Textile Index shows that in September and October this year, the total corporate climate index fell by 17.93% and 18.22% respectively. According to the report, during the period from September to October, the north-south merchants of popular dyeing fabrics fell in the ring, and the traditional marketing was still dull. The spot transaction of autumn running products was retracted from the previous month, and the orders for dyed fabrics in early winter were insufficient. After the contraction, the production orders of the enterprises showed a retreat. Some of the textile printing and dyeing enterprises saw a partial decline in the operating rate, and the production and sales contracted.
Zhejiang Lanao Textile Co., Ltd. mainly produces and sells polyester filament yarn and chemical fiber fabrics. The company originally had 12 sets of texturing machines to operate without interruption, but since September 1, it has reduced production by about 2/3. Most of the employees also started their holidays. "No way, the silk can not be sold, the inventory is a lot more, can only be so." Chairman Tu Yuexin frowned.
In addition to Zhejiang, the cities that have spread the “cooling tide” include fabric clusters in Jiangsu, Guangdong and Fujian. According to data from the Changshu polyester yarn market in Jiangsu Province, from mid-September to the end of October, the market for polyester filament and nylon yarns was not good, and prices continued to fall. "Since September, FDY and FDY have been bright, and the prices of DTY products have basically declined. They have broken the trend of stable and small increase, and the market demand is small." Market observers said.
A person in charge of a company in Chaoshan, Guangdong, who asked not to be named, said with a smile that this year, the company has been in a semi-stop state. After entering the traditional peak season, the basic state of the company has not changed, and some enterprises in the surrounding area have such a situation.
Edit Comment: As the saying goes: "Frozen three feet, not a cold day." At present, the entire fabric industry is facing many challenges. In order to solve the problem, fabric companies need to hold innovative products and have a good market strategy, so that they can hope to become the cold plum of the top frost.
Severe pressure on the situation
Since July this year, the United States has successively announced a 25% import tariff on Chinese goods worth US$50 billion, and announced a list of US$200 billion worth of Chinese goods to be imposed on 10% tariffs. At the same time, China has also responded accordingly, and Sino-US trade frictions have escalated.
Wang Haijun, head of Shaoxing Hengchang Import and Export Co., Ltd. said that the sales situation in the second half of this year is a bit "cold". It is understood that Hengchang Textile has been deeply cultivating the US market for 10 years. About 40% of its products are directly exported to the United States, and the remaining 60% of products are processed into garments through Vietnam and other places and then shipped to the United States. Wang Haijun said that the company's exports for the first six to six months of this year were basically the same as in previous years, but the export volume in July fell by about 15%. "Affected by Sino-US trade frictions, the purchasing power of the US market has declined, and merchants are in a wait-and-see state."
“Because some local merchants in the United States are in a wait-and-see state, the recent orders will be relatively reduced, but the impact on the company is not large.” Wu Jing, business manager of Shaoxing Rhein Textile Import and Export Co., Ltd. said. Rhein Textile is mainly engaged in artificial cotton, knitted fabrics, etc., with a wide range of products, covering low, medium and high grades. Exports to the United States account for about 10% of the company's foreign trade share, mainly in New York and Los Angeles. Wu Jing said that for the relatively high-end market such as New York, the company will directly process the fabric into clothing and then export it to the United States. “Clothing has not yet been imposed on customs duty, so it can directly avoid the taxation problem.” For large wholesalers such as Los Angeles, although the order output may decline, it will not drop significantly.
Editor's comment: Sino-US trade friction is constantly escalating. Although it is not enough to cause a comprehensive impact on the textile industry, the uncertainty of the export environment will have a negative impact on relevant international purchase orders and textile companies' orders and raw materials procurement. The growth of the international market will slow down and the export pressure of the textile industry will increase. For China's fabric companies, this is a crisis and a turning point. As long as the product quality is stable and the company's innovation ability is strong, the market's voice and anti-risk ability will be stronger. After the big waves, it is believed that it will usher in better. tomorrow.
Practice the transfer of environmental protection industry
In 2018, affected by the national environmental protection policy, a large number of water jet looms were eliminated in the weaving clusters in Jiangsu and Zhejiang. This year, only the low-end water jet loom in Wujiang District, Suzhou City, Jiangsu Province, eliminated as many as 30,642 units.
Judging from the preliminary investigation, there are mainly three problems in the current weaving industry. First, sewage treatment is not in place. The sewage take-up rate of only 20% is more than 50%, the sewage compliance rate is less than 50%, and the water reuse rate is only 10%. Second, there are many violations of laws and regulations. Water jet loom enterprises have problems such as smuggling and discharge, excessive discharge, and abnormal operation of sewage treatment facilities, which seriously affect the water quality of the inland rivers and present a “milk river”. Especially in the high temperature period in summer, the river still has black hair smell. phenomenon. Again, the industry is not standardized. Some enterprises are driven by interests, do not go through any formalities, and increase the number of knives and knives without authorization; some are sub-letting a factory to a number of scattered water looms owners, management confusion.
However, it is worth noting that when the water jet loom in Jiangsu and Zhejiang provinces was eliminated in large areas, many manufacturers have already moved to nearby Anhui, Jiangxi, Hunan, Hubei and other regions. Due to the strong support of the local government, the production capacity of water jet loom is in full swing. Many water jet loom have settled down, and some are on the way to migration.
Editor's comment: The use of water jet loom is always inseparable from the problem of sewage discharge. The Jiangsu and Zhejiang textile industry clusters respond to the strict requirements of the state for environmental protection, and the elimination of water jet loom is irreversible. However, the growing market for chemical fiber fabrics has determined that there is still a market for water jet looms that are most suitable for weaving chemical fiber filament fabrics.
Nowadays, in order to improve environmental protection, Jiangsu and Zhejiang provinces have increased the added value of products, restricted the development of water jet loom, and promoted the filament weaving industry to transfer to water-rich areas in the central and western regions. In fact, as long as the sewage treatment is done to achieve zero discharge, the water jet loom is still the development direction of the future filament weaving industry.
Properly planned green
In February of this year, the Xiangnan Textile Industry Base (Cowboy Town) project started in Changning City, Hengyang, Hunan. With a total investment of 10 billion yuan, the project will become the largest denim apparel industry cluster in Hunan.
This project has realized the overall internal migration from the Zengcheng denim industrial chain in Guangzhou, and built the environmental protection treatment park in the sub-district area. It adopts advanced environmental protection technology, and its washing process can reach three types of water quality for wastewater treatment.
It is understood that the planned land for the Xiangnan Textile Industrial Base project is about 1.33 million square meters, of which the first phase covers an area of 540,000 square meters. In the first phase, a sewage treatment plant with a capacity of 60,000 tons per day, 38 water washing plants, and 6 dyeing facilities will be built. The factory, 8 pulp dyeing factories, 8 mercerized post-factories, 3 printing factories, 1 carton manufacturing plant, and 1 chemical factory apparel production park project are located in Yiyang Industrial Park, Changning City. Production company and one export trade center.
The industrial base sewage treatment plant will adopt the MBR membrane process. After treatment, the discharged wastewater will reach the first-class A standard, and 50% of the treated wastewater will be reused to the textile water and greening water for the development of circular economy in Shuikou Economic Development Zone. Painted and colored." After the completion of the base project, it will cover the entire industrial chain of denim apparel production, and build Hunan's largest denim apparel industry cluster to boost Changning.