Will A Boycott Of Dye Prices Work? Dye Stock Market Value Of 10 Billion Missing.

Shaoxing, Zhejiang, is a truly "dyed capital" in the world.

Dyes and printing and dyeing industry play an important role in the local economy.

Although the two are in the same boat, there will be disputes.

Recently, a paper on printing and dyeing industry association of Keqiao District of Shaoxing Municipality on "boycotting the behavior of abnormal rising prices of dyestuffs and chemicals" has been put into the spotlight again.

The proposal pointed out that since the end of March this year, the price of dyestuff materials, which is the main raw material for printing and dyeing enterprises, has risen sharply, which has seriously engulfed the normal production and business profits of our printing and dyeing enterprises. Most of the printing and dyeing enterprises have been in a state of loss, and production and operation are difficult to sustain.

In order to curb the abnormal rise of dyestuff prices as soon as possible, the Keqiao printing and dyeing industry association has launched an initiative to all the printing and dyeing enterprises members to jointly resist the abnormal rising prices of dyes and chemicals.

It is reported that the current supply side of dye industry, the oligopoly pattern is obvious, the production capacity mainly concentrates in Zhejiang Longsheng (24%), run earth shares (19%) and Jihua Group (17%) three leading enterprises, the effective market share has accounted for more than 70%.

Affected by the proposal message, dye listed companies in April 19th were significantly weaker than the market, and the group fell after opening.

The two class market showed that as of April 19th, the three leading companies in the dyestuff industry, Zhejiang Longsheng (600352), fell 8.94%, and the shares of rinterland (002440) fell 4.29%, and the Kyrgyzstan group (603980) fell 4.7%.

In addition, enterprises such as anothem, Asia share, Haixiang pharmaceutical and so on also have different ranges of decline.

According to rough calculations, the listed companies of the dyes listed above have evaporated more than 10 billion market capitalization a day.

"This is the industry's self-discipline, safeguarding the economic order and ensuring the development of the entity."

Faced with the call of Keqiao printing and dyeing industry association, an official in Shaoxing said to reporters.

A printing and dyeing enterprise in Zhejiang told reporters that "when the enterprise is challenged, it is understandable to live and live a good life."

What is the current situation of printing and dyeing enterprises?

In April 19th, China's leading printing and dyeing enterprise, hang min share (600987), told reporters that "the general situation of printing and dyeing industry is not well evaluated.

As far as the situation of our company is concerned, the profit margins are relatively high due to the fact that the civil aviation share services are generally high-end customers.

At the same time, in terms of operation, the civil aviation shares take the measures such as staggering peak purchase, agreement purchase and so on, and the cost control is relatively good.

In addition, in the face of the pressure brought by the rising price of dyes, the company has taken the potential of internal exploitation to reduce costs and increase efficiency.

In fact, the reporter has learned that due to the cost of raw materials and other factors, the major dyeing factories of Hang min share have adjusted the price of dyeing many times this year.

In order to ensure that the company's Hangzhou Airlines civilian dyeing and finishing Co., Ltd., in March 23rd and April 8th, the company raised the price of dye dye two times.

In addition, public information shows that since March 23rd, 5 printing and dyeing enterprises in Hangzhou have adjusted the cost of dyeing and finishing. In March 28th, 8 printing and dyeing enterprises in Shaoxing issued price notices. From the notice, we can see that the price of chemical dyes rose rapidly and the cost of dyestuffs increased rapidly. Since April 1st, the price of flat-panel products has increased by 300 yuan / ton, and the price of Spandex Products has increased by 400 yuan / ton.

Shaoxing, which is located in Keqiao, is the most gathering place of China's printing and dyeing industry. Hundreds of printing and dyeing enterprises have been set up. Printing and dyeing capacity accounts for about 1/2 of Zhejiang's total, accounting for more than 1/3 of the total.

Therefore, "dye vat" has also become the pronoun of Shaoxing.

According to the understanding, the printing and dyeing enterprises were generally not optimistic about the industry this year, so the preparation of dyes for enterprises is generally not high.

However, the explosion of Xiangshui thousands of miles away changed the trend of the industry almost instantaneously.

Even though the incident has passed for nearly a month, the shock wave is still spreading.

Disperse black ECT300% is the most representative product of dyestuff industry.

E understands that the price of scattered black ECT300% has risen to $70 / kg from the latest 47 yuan / kg before the explosion, and the actual paction price has also exceeded 50 yuan / kg.

At the beginning of April this year, when the price of disperse black ECT300% was 60 yuan / kg, e reporters went deep into Shaoxing to carry out field visits to dyestuff and printing and dyeing industry chain.

At that time, a number of dealers told e that the price of dye has never been increased this year, and many printing and dyeing enterprises have regrets that the cost is rising too fast.

The proposal points out that since the end of March this year, the cost of dyes and dyes in Keqiao's printing and dyeing enterprises has surged to 45% from the normal state, accounting for 25% of the total processing cost in just 1 months.

It has seriously affected the normal production and operation of the vast printing and dyeing enterprises, and also endanger the sustainable development of enterprises.

In fact, when the cost of dye has risen sharply, the Keqiao printing and dyeing industry association has repeatedly called for the boycott of upstream dye enterprises.

Related media also reported in 2013, 2014 and 2017.

In 2013, for example, in August of that year, the Shaoxing printing and dyeing industry association organized more than 200 printing and dyeing enterprises in Shaoxing, and jointly submitted a report on antitrust requirements to the Zhejiang price supervision and inspection sub Bureau, mainly aiming at the two major dye giants of A shares, Zhejiang Longsheng and run earth shares.

According to media reports: at that time, the Zhejiang Price Bureau interviewed several enterprises and printing and dyeing associations in Zhejiang, such as Longsheng, and asked for reasonable pricing, but no evidence of monopoly was found.

It is learnt that in addition to the printing and dyeing industry, the dye industry is also a business card in Shaoxing.

Zhejiang Longsheng has the world's annual output of 300 thousand tons of dye production capacity and annual production capacity of about 100 thousand tons of auxiliaries, ranking first in the global market.

At the same time, Zhejiang Longsheng also has an intermediate capacity of 110 thousand tons per year, and the yield of benzene two amine and resorcinol ranks the highest in the world.

The total annual production capacity of intercontinental shares (002440) is nearly 190 thousand tons, and the market share of product sales occupies the top two of the domestic dye market share.

Is the collective boycott of Keqiao's printing and dyeing stopped?

Or do we need to follow the old practice and play it further?

In April 19th, the reporter contacted the Keqiao printing and dyeing industry association.

However, the relevant persons did not give any explanation on the basis of the meeting.

Will the voice of the Keqiao printing and dyeing association be relayed?

In April 19th, the Zhejiang printing and Dyeing Industry Association told reporters: "at present, the Zhejiang printing and dyeing association has no plan to organize similar boycott activities.

The past few boycotts did not play a big role.

The rise or fall of prices is a market move, and the rise will still rise.

As a downstream printing and dyeing enterprise, we should also upgrade our mind to upgrading the industry.