Printing and dyeing new regulations will lead to a wave of price increases in the textile and apparel market

"Now there is no way, the fabric is too tight, and several orders have been pushed one after another." Jiao Qiji, chairman of Jinan Sanyuan Okun Garment Co., Ltd., was really anxious recently. Many small and medium-sized printing and dyeing enterprises have been shut down one after another, which brings two problems to the downstream clothing, home textiles and other enterprises: waiting for the "rice" to cook, and the "rice price" is still rising.

Another news is that the Ministry of Industry and Information Technology has revised the two printing and dyeing industry specifications documents. The two new printing and dyeing regulations have been implemented since October 1, 2017. The regulations mainly focus on the term “environmental protection” and have new requirements for the technology, equipment and management of the printing and dyeing industry. A higher environmental threshold will lead to a continuous price hike in the textile and apparel market.

The small printing and dyeing factory has been shut down successively, and the clothing enterprises have "waited for the rice pot"

Jiao Qiji's enterprise is mainly engaged in custom-made clothing. As his upstream supplier, after printing and dyeing enterprises, the printing and dyeing enterprises print and dye according to different needs and then sell them to garment manufacturers. Due to environmental pressure, printing and dyeing factories began to shut down in August, which is equivalent to a chain of “chains” on the entire production chain.

A large number of shutdowns and closures of printing and dyeing factories are equivalent to direct “broken rations” for some garment enterprises. Jiao Qiji said that its upstream suppliers are mainly concentrated in Shandong, Zhejiang and Guangdong provinces. In this round of environmental protection, some small printing and dyeing enterprises were eliminated due to non-compliance, which directly led to a sharp drop in fabric production. Fortunately, this part of the gap was transferred to a large supplier, and it is not yet "no rice."

But because the market is in short supply, raw material prices are rising. "Compared with the beginning of the year, the current fabric prices have risen by more than 10%, and some even reached 20%." For apparel companies, the extension of delivery time also brings a lot of trouble.

“The so-called 'Golden September and Silver 10' is now the time for the most orders.” Jiao Qiji told reporters that due to the shrinking or shutting down the capacity of some small printing and dyeing factories, the clothing enterprises have to transfer orders, so that those environmentally friendly facilities are complete. Big business orders are extremely hot. Due to the surge in orders, the delivery period is also longer than the original.

"Before reminder, it may take half a month to arrive. It is very likely that we will not be able to wait for 30 days." Jiao Qiji said that some orders are urgent, and the delivery of raw materials is too long, and it has been painfully pushed several times. Order.

Printing and dyeing new rules to add code, this round of price increases has just begun?

"Looking at the 'Double Eleven' is coming, and now is stepping up the stocking." Like the apparel industry, the home textile industry is also facing tight supply. As the Internet's first towel brand, Jinan's Mao Maoyu Home Textiles has recently been in the “printing and dyeing factory”. A person in charge told the reporter that the goods that could be delivered in a few days may now take up to half a month.

According to industry insiders, this year, the printing and dyeing industry has suffered the most serious "environmental governance." Moreover, the Ministry of Industry and Information Technology recently revised the two industry normative documents of the "Printing and Dyeing Industry Access Conditions (Revised Edition 2010)" and "Interim Measures for the Administration of Printing and Dyeing Enterprise Admission Notices", and formed and printed the "Printing and Dyeing Industry Standard Conditions (2017 Edition). ) and the Interim Measures for the Administration of Printing and Dyeing Enterprise Regulations. The two new editions will be implemented as of October 1, 2017.

"It is foreseeable that small factories that do not meet the standards will continue to shut down, and the investment of large enterprises in environmental protection will continue to increase. Together with the price increase of printing and dyeing materials, the cost pressure from the upstream of home textiles and garment enterprises will increase. The bigger the company is.” The person in charge of a home textile company in Jinan said that the price of raw materials has increased by at least 5% this year, and the price of the end market is only “slightly adjusted”.

"For new customers, we will calculate the quotation according to the new cost. But for many years, the old customers, it is difficult to accept the price increase." Jiao Qiji said that at least from the current point of view, the price increase can only be "slowly negotiated" "As for cost pressure, companies have only repeatedly reduced their profits and bit their teeth."

Many industry manufacturers said that it is certain that the off-season in the peak season is a foregone conclusion. Many printing and dyeing enterprises have eliminated backward production capacity and have reached the key to life and death. The wave of price hikes in home textiles and apparel fabrics has just begun. In the future, the price of downstream products will show a cost-driven rise.

Editor in charge: Xu Yuehua