The hottest profit margin has become a difficult p

The profit margin has become an intractable pain for the dye industry

"on the surface, the international financial crisis is a drag on the growth rate of the dye industry, but in essence, it is an impact on the extensive development model that relies solely on capacity expansion." Tian liming, Secretary General of China Dyestuff Industry Association, said at the post crisis International dyestuff and pigment industry forum held last week. Judging from the current development of the dye industry, this impact has been truly reflected - the industry's profit margin continues to be low

high value-added industries encounter low profit margins

according to Wang Zhe, President of China Dye Industry Association, the two main varieties of China's dye industry are reactive dyes and disperse dyes. Among them, the profit margin of reactive dyes is particularly low. Since the second half of 2008, the net profit of the enterprise is only 3% - 5%. This is because the export of reactive dyes previously accounted for 30%, and the continuous decline in export sales in the past two years has led to overcapacity in China, which in turn led to vicious competition among enterprises. At present, large enterprises may be able to survive for a while, and small and medium-sized enterprises are hard to say. Although the situation of disperse dyes is slightly better, the long-term trend is not optimistic

xiangzhifeng, general manager of Zhejiang Longsheng dye Chemical Co., Ltd., said during the forum that due to the generally low profit margin, domestic dye enterprises have worked hard in recent years. As a product with high added value and high technical content, it is abnormal for dyes to make only a few profits. This situation not only affects the development of the dye industry itself, which is composed of many accessories, but also hinders the production, operation and profitability of upstream intermediate enterprises, so that the funds of the entire industrial chain are tight, and the normal production safety, environmental governance and other investments of enterprises are difficult to guarantee, which may further form a vicious circle

due to the high production concentration of upstream intermediates, several enterprises basically dominate the market supply. Once an accident leads to production reduction or shutdown, it will directly impact the dye industry. Some time ago, there was such a situation. An intermediate factory exploded, and the price of raw materials immediately rose, and the dye enterprises fell into a passive position. "What I am most worried about now is not the direction of the market, but that the dye industry chain is too fragile. Because no matter how depressed the economy is, people will have to wear clothes, and if the industry chain goes wrong, it will impact the dye market nationwide and even globally." Xiangzhifeng said

Tian Liming is also worried about this situation. He pointed out that the main reasons for the low profit margin of the dye industry were similar products, insufficient high-end products and vicious price reduction, which must be changed. Dyes were originally fine chemical products with high added value, high profit margin and high price, which played an important role in the development and growth of many chemical multinational companies. However, in the past two years, the dye market has been in a situation of production exceeding sales, resulting in irrational competition among the industry

strengthen market coordination and seek reasonable interests

Xiang Zhifeng said that Longsheng company, as the leader of the dye industry, has tried to coordinate with several large dye enterprises in China in recent years, hoping to change the situation of simply fighting a price war, and achieved certain results in the initial stage, but it failed to last due to mutual interest conflicts. Therefore, the association also needs to do more coordination to end disordered competition and promote industrial progress. At the same time, it also needs to eliminate the potential concerns of the downstream printing and dyeing industry in this regard

another enterprise representative pointed out that the competition in the domestic dye market is often based on the price. All indoor pavilions are full! "We need to build more and more outdoor temporary exhibition halls as the core, which is very detrimental to the development of the industry. Dye enterprises need corresponding capital investment for technological innovation, new product development, energy conservation and emission reduction, going abroad, etc., and it is naturally difficult to achieve without reasonable profits. He suggested that the association join or even lead the market coordination among dye enterprises. It is best to set up a special coordination group and invite professionals from all aspects to join And jointly promote the healthy development of the industry

in this regard, Tian Liming made it clear that now the added value, profit margin and price of dyes are relatively low, which is certainly unreasonable, and we need to take active action to end this situation. There is nothing wrong with the general direction of joint development of the industry, and the association is willing to play a coordinating role in it. However, there is an important premise, that is, we cannot pursue huge profits through monopoly practices and then affect the interests of downstream. The goal of the industry should be to strive for a reasonable profit space above the cost and under the sudden profits

he said that dye enterprises had a hard time in the past two years. The performance of some large enterprises improved in the first half of the year, not because the overall space of the industry was expanded, but because the closure of some small enterprises freed up the market. In general, the downstream should have a certain bearing capacity for dye enterprises to moderately improve their profit margin, because dye products account for a lower proportion of the cost of the downstream printing and dyeing industry and a lower proportion in the clothing industry. It can be said that the dye industry has the basic conditions to improve the profit margin

structural adjustment and industrial upgrading are the basis of high intensity.

Wang Xuan proposed that we should strengthen the merger and reorganization among enterprises, take the road of collectivization development, and realize the compression and adjustment of excess capacity through industry reshuffle; Strengthen the development of medium and high-end products, and expand the profit space by improving the product grade; Enterprises need to communicate more information, strengthen coordination and change the situation of disorderly competition; Seize the opportunity of the recovery of the international dye market. Although the developed countries have not yet come out of the crisis in the short term, the prospect is still worth looking forward to

Tian Liming stressed that we should speed up the creation of world famous brands of Chinese dyes, establish brand development plans, and reduce the scale of OEM products. Brand effect can bring significant economic benefits. In recent years, domestic enterprises have paid more attention to brand effect, but the progress is not obvious. At present, several reactive dyes have become famous brands in China, but the quantity is far from enough. Compared with 60% of the global production, China has too few brands

as a product with high added value and technology, the development prospect of dyes, which is newly increased by 200million yuan in the finance of Shenzhen, is still promising. In particular, the market demand for green products and brand products will continue to expand. Efforts should be made to improve the ability of independent innovation and constantly develop new products and technologies with independent intellectual property rights. "We should have confidence in improving the profit margin. With the general recognition and efforts of everyone, the dye industry is not far from the era of high profit margin." Tian Liming said

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