Recently, the Secretariat of the China Dye Industry Association has paid close attention to the changes in the national epidemic in Shanghai and other regions. In mid -May, the staff of the Secretariat of the China Dyed Association made contact with nearly 70 member companies with a variety of communication forms such as telephone and WeChat to fully understand the production and operation of member enterprises. Care and condolences to the Secretariat of the Association, and provide support as much as possible.
Recently, the new crown epidemic has erupted in many places in my country, especially in Shanghai and surrounding areas (including Jiangsu, Zhejiang and other places) where my country's dyes, organic pigments and textile auxilizers are relatively concentrated. In Beijing, Beijing has been seriously affected by the new crown epidemic. In this more universal contact with member companies, we deeply understand the difficulties that the new crown epidemic to member companies.
With the outbreak of the epidemic and the continuation of the Russian War, the global industrial chain and supply chain encountered unprecedented impact. From the information analysis of the feedback from member companies, there are four points for the reasons for the fact that the production and operation of the dye industry is greater:
1. Affected by the new crown epidemic and the Russian and Urotic wars, the demand internal and external demand was weak, and the production and sales of dyes were severely reduced. Affected by the epidemic in the domestic printing and dyeing industry, the demand for dyes has decreased, and the Russian and Ukraine War exports to dyes, especially the exports of Europe and the United States, has a greater impact.
2. Affected by the new crown epidemic, the price of some raw materials in the upstream rose, and the desire for downstream demand decreased, resulting in a greater pressure on dye prices, severe squeezing dye prices, further reduction in profit margins, and some companies facing losses.
Third, affected by the new crown epidemic, the local government has strengthened personnel control, personnel travel and resumption are limited, affecting the development of production organizations and business activities. At present, although some companies have begun to resume production, the cost increases (protection, concentrated accommodation within the region, restricted across regions, etc., the actual operation level is difficult).
Fourth, affected by the new crown epidemic, the logistics is limited. Domestic logistics slows down, rising freight, raw material transportation affects production organizations, and product transportation affect sales. For export logistics, most orders need to be transferred from Shanghai Port to other ports. Except for domestic transportation, the insufficient capacity of ports and the significant increase in shipping costs have brought great difficulties to enterprises.
In fact, the above reasons are only apparent reasons for the difficulty of production and operating conditions caused by the new crown epidemic and the influence of the Russian and Ukraine War. The deep -level reasons are due to the overcapacity of the industry, vicious competition, and mutual prices.
In recent years, the layout of my country's pigment industry has changed significantly. Some enterprises have shut down and transferred, and some enterprises are expanding production capacity. According to incomplete statistics, the organic pigment has been built, the construction and proposed capacity of more than 200,000 tons, and the dyes have hundreds of thousands of tons. Most of the products of the pigment industry have now appeared too much. If excessive new production capacity is put into production, the industry is facing too much supply.
The new production capacity is excessive, and the competition between enterprises will further intensify, and price competition is becoming increasingly serious. The raging global epidemic in the past two years has brought unprecedented blows to the global economic development. During the period, the import and export trade was severely blocked. The prices of chemicals raw materials and intermediates continued to rise. The industry brought a huge impact. Especially since 2021, upstream raw materials and energy prices have risen rapidly. Although the overall output and main business income of the color dyeing industry have been growing, the price of pigments has been squeezed in the industry and downstream industries. The cliff -type decline, the total profit of the annual annual profit is negatively growing, or even a serious decline. Some companies in the pigment industry have suffered losses. Judging from the performance of the main dye listed companies in the first quarter of 2022, some dye listed companies have severely declined or even lost money. The entire dye industry has been fatigue. These years have been a very small phenomenon in the dye industry.
The serious industry production capacity problem, even if the new crown epidemic and the Russian and Ukraine War ended, will not improve for a long time. The fatigue industry has appeared in the dye industry, and it has been reflected in the prosperity of the dye industry. According to the current trend, the dye industry is still frozen. Watching the dye industry for a long time will rebound and recover. Not only will it depending on the prosperity of the downstream printing and dyeing industries, but also the adjustment of the industrial structure of the dye industry. The situation of the dye industry in 2022 will be quite severe.
Here we advocate the industry to adjust the industrial structure, reasonable production restrictions, orderly competition, fair pricing, and avoid maliciously lowering prices. Industry enterprises should correctly analyze the current national industrial policy orientation and macroeconomic situation. They keep pace with the times and follow the trend. All enterprises are requested to pay close attention to production and operations, and adjust the production capacity and operating strategies in a timely manner according to fluctuations in the upstream raw material market to ensure that the production and sales prices of dyeing pigments are in a reasonable range to stabilize the market. At the same time, it is recommended that enterprises strengthen management, practice internal skills, do their best to reduce the consumption and energy consumption, reduce the "three wastes" emissions, improve product quality, develop special products, dislocate competition, and reduce the harm caused by homogeneous competition.
We sincerely hope that companies affected by the new crown epidemic are actively doing good resistance in accordance with the requirements of the local government. Here, the Secretariat of the Association will extend a cordial condolences to the dye industry companies and employees that persisted and fight against the front line of resistance! We firmly believe that "no spring will not come" "No epidemic will not pass!" As long as the colleagues in the industry work together, they will be difficult to get in the case, and they will definitely return to normal production and life. It will definitely reproduce the spring of our industry!
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