In recent days, as a result of the soaring prices of undesired dyes, the chamber of commerce of the indignant industry of the city of sau xing has taken the lead in launching an initiative calling on the company to boycott the chemical raw materials products of the company headed by the lung sing group。
The price of dyes has risen for 18 months since the beginning of 2013. Industry sources have indicated that, while businesses and related associations would like to join forces to improve bargaining power with upstream firms, the problems of decentralization and small size do not allow for full agreement。
In an interview with a journalist, daily economic news, chen quan, secretary-general of the indian industry association of the shohing kobashi district, stated that, in june this year, the industrial indignity association of the kohashi district had taken the lead in launching a corporate initiative to counter the rise in the price of dyes, which has so far failed. In august last year, shao xing indo industries organized a monopoly of more than 200 printing firms v. Zhejiang longsein (600352, sh) and suzen (002440, sz), the two dye giants, and the government department's investigation, which resulted in no evidence, “it was difficult for the printing company to survive. In the first half of this year, the profits of all the printing companies in the kobashi district were less than those of the lone sing group, and the dyes would be further increased in the current situation”。
The price of dye goes up
In march of this year, according to reports from the daily newspaper shao xing, which is home to the indian industry in zhejiang province, there are hundreds of indian companies with more than one half of the total in zhejiang province and nearly 30 per cent of the total in the country。
Even so, the bargaining power of shao xing print industry vis-à-vis upstream suppliers remains limited. “the raw materials enterprises are concentrated and the giants, such as the dragons and the earth, account for most of the market share.” chen quansheng said that “in contrast, indian firms are scattered and no one can confront these large upstream enterprises”
According to chen quansheng, dyes are the main raw material for printing enterprises, and the country's largest dye companies are concentrated in the area of jiang zhejiang. Zhejiang longsein, zhejiang zhengxi and three dye companies in hangzhou gihua alone account for more than two thirds of the national dye market. In the past, about 90 per cent of the dyes used by the zone of cobashi were from the three enterprises. The price of dyes rises so that the indoctrination can only respond passively。
According to the information received, after the spring season, the price of dispersed dyes rose sharply, doubling from last year. The rise in the price of distributed dyes has led to an increase in the price of other dyes, some of which have tripled in base last year. In response to the rising cost of dyes, as reported in the daily business journal, around the spring season, the price of dyes in local printing enterprises in sau xing was raised and, as of 1 march, printing fees for over 20 needle-weaving enterprises in the coastal, quail and lantin areas were generally increased by 10 to 12 per cent. Journalists have learned that, until 2012, the price of dyes, which are the source of dyes, had hovered at a low level, standing between $15,000 and $17,000 per ton. In 2013, the price of dyes rose by more than 70 per cent domestically. Of these, the average price of the main variety of distributed dyes increased from $17,000 per ton at the beginning of the year to $33,000 to $35,000 per ton at the end of the year, an increase of 94. 12 to 105. 88 per cent; the average price of active dyes also increased from approximately $20,000 to $36,000 per ton, an increase of 75 to 80 per cent。
Industry chamber of commerce lead resist/
“industrial overcapacity, increasingly stringent environmental standards, can slowly transform and adapt, but the sharp rise in the price of dyes has reduced profits, which are already minimal.” according to one of the old branded companies in the corbashi district, most of them have also increased their dye costs since the beginning of the year, but the increase is still below the increase in the price of the dye, and the profit from the increase is fully covered by the dye plant。
According to an initiative issued on 5 september by the indian industry chamber of commerce in the city of chao xing, the indian industry chamber of commerce in the city of chao xing launched an industry-wide joint initiative on 5 september 2014 to firmly counter the chemical price monopoly as soon as possible。
Chen quan indicated that, as a big market for dyes, the whole of the sho xing indo enterprise could account for about 40 per cent and 50 per cent of the production of several enterprises, such as the dragon sheng, and the tzu soil. The association hopes that it will be able to unite its enterprises and cope with the rise in dye prices. It is hoped that prices will return in order to facilitate the long-term development of the industry as a whole。
Chen quansheng revealed that in august last year, the chao xing indo industries association organized more than 200 printing enterprises and jointly submitted a report to the zhejiang province price monitoring and inspection division, targeting the shares of zhejiang yong sing and tsin, the two main dye giants of a. Following a joint investigation by the zhejiang provincial price bureau, iec and others, it was not possible to find tangible evidence. A related source from the kobashi authority also disclosed to the daily economic news reporter that the zhejiang provincial price bureau had interviewed a number of enterprises such as lung sheng and the indignant association to demand a reasonable price, but no evidence of monopoly was found。
The material giant has benefited a lot
Compared to the difficulty of doing so, the two main raw material giants, the zhejiang sang-seung group and the shares in the zhejiang earth, have benefited from continued increases in dye prices. The six-monthly newspaper zhejiang yongsein shows a net profit of 1,542 million yuan in the first half of 2014, compared to 547 million yuan in the same period the previous year, an increase of 181. 60 per cent. According to the eastern general wealth statistics, the māori rate in zhejiang longsein has risen from 26. 07 per cent in the first quarter of last year to 40. 08 per cent in the first half of the year, and net interest rates have also increased by 14. 27 percentage points over the same period, from 6. 35 per cent to 20. 62 per cent. In the dye business, the six-monthly newspaper zhejiang longsein reported an increase of 13. 89 percentage points, to 44. 73 per cent over the same period
In the view of many companies in the indian dye industry, after 2012, the two leading firms in the country moved from competition to cooperation, limiting the expansion of small and medium-sized productive capacity through patent protection, expanding voice and oligopoly patterns in the dye industry were the main drivers of the rise in dye prices. However, this is not the only reason for the increase in the price of dyes, and environmental and raw-material fermentation factors have led to a steady increase in the price of dyes in supply and demand patterns。
On 12 september, journalists called the secretary-general of the long sing group, stating that the group's secretary-general yao jianfang was currently on a business trip and was unable to respond promptly to the relevant information. On 15 september, journalists travelled to shao xing city, where the group is located, and members of the group indicated that all media interviews were under the responsibility of general yao and that their personnel were still travelling. Since then, journalists have called yao jianfang again, stating that they will not accept telephone interviews and that public responses will still await the completion of their travels。
Industry is of the view that, as the state's emphasis on environmental protection, especially in the highly polluting sectors, will continue to reduce and limit production in enterprises, and that it is more likely that the price of dyes will increase this year。
Responsible editor: zhang dei
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