General

On the 22nd, a piece of news about "shaoxing Keqiao high-energy-consuming enterprises shut down before the National Day" quietly circulated in the industry.

In the evening of the same day, Keqiao listed company Xidamen and Yingfeng shares successively issued announcements of suspension of production, confirming that what they said was true.

West Gate: Due to the shortage of power supply, Zhejiang Province has recently implemented power consumption reduction for key energy-using enterprises within its jurisdiction. Under the premise of ensuring safety, key energy-using enterprises have been suspended. Production is expected to be suspended until September 30. Xidaemen is currently forced to temporarily suspend production, which is expected to affect the output of shading fabrics about 115,400 square meters per day.

Yingfeng shares: In order to alleviate the coal inventory situation and ensure the safe and orderly production of heating and heating enterprises, the thermal power enterprise in Ma'an Street, Keqiao District, where the company is located, plans to gradually reduce the heating load, and the heating enterprises will stop production according to the tier. According to relevant requirements, the company temporarily suspends production from September 22 to September 30, 2021.

The production capacity during this temporary shutdown accounts for about 3% of the company's total annual production capacity, and will not have a significant impact on the company's annual total production and normal production and operation activities.

Earlier, two local thermal power plants had sent letters to users, reminding them of related risks.

It is reported that due to the "dual control" of energy consumption, Shaoxing Keqiao issued a notice yesterday, imposing curtailment measures on high energy consumption enterprises, involving 161 enterprises such as thermal power plants, printing and dyeing plants and polyester factories. As a major printing and dyeing town in China, the printing and dyeing enterprises within the Keqiao Binhai area have started to stop one after another last Sunday.

Not only Keqiao, other regions in Zhejiang have also started to stop production!

Wujiang, Shaoxing, Puning, Changshu, Tongxiang, etc.

Many printing and dyeing factories urgently adjusted dyeing fees

Recently, Jiangsu, Guangdong, Zhejiang and other major textile and chemical provinces have made heavy blows, taking measures such as suspension of production and power outages on thousands of companies, which caught local companies by surprise.

The printing and dyeing industry, which bears the brunt, is forced to adjust the price of dyeing and dyeing factories to alleviate the pressure on various production costs. In late September, many printing and dyeing factories in Wujiang, Shaoxing, Puning, Changshu, Tongxiang and other printing and dyeing factories urgently adjusted the dyeing and finishing costs to cope with rising costs, involving knitted fabrics and woven fabrics series.

Double control limit stop production coincides with the traditional peak season

It is expected to accelerate the digestion of all links of inventory

The textile and chemical fiber industry was affected by the double control of production cuts and halts. The scope of the impact was concentrated in Jiangsu and Zhejiang. The impact lasted from mid-September to after the National Day holiday, which coincided with the traditional peak season of the textile and apparel industry.

"Although orders in this year's peak season have performed poorly, there was still no obvious improvement in mid-September. Exports may have been completed ahead of schedule under the pressure of rising sea freight, but the domestic "Double Eleven" is still an important sales window. The greater the possibility of recovery." Industry experts said that last year's orders appeared concentrated at the end of September, which represented a centralized emergency order. This year, all links of upstream raw materials have been fully prepared for peak season expectations, but the order performance is mediocre. Production restrictions in September will reduce output to a low level. Once the peak season orders in October are reflected, it will accelerate the digestion of all links of inventory, which is conducive to the restoration of industrial chain profits. "As for whether the peak season of'Golden Nine and Silver Ten' is worth looking forward to, there are currently no high expectations for exports, and domestic consumption is relatively weak, but window sales orders are still worth looking forward to." After production cuts and stop production, if peak season orders resume, it will help. In order to eliminate the inventory of the industrial chain, the negative feedback pattern of weak demand, rising inventories and falling profits will be reversed.