However, with high temperatures, electricity load exceeding record highs, and large-scale electricity price adjustments likely to come, textile companies may need to prepare in advance to meet a new round of cost challenges.

2024/07/0201:57:33 finance 1455

As the high temperature has arrived, the demand in the textile industry has gradually weakened. The production of some textile companies has also entered the holiday stage, and the operating rate of weaving factories has reached a low level. However, some foreign trade companies have seen a small improvement in their orders. However, with high temperatures, electricity load exceeding record highs, and large-scale electricity price adjustments likely to come, textile companies may need to prepare in advance to meet a new round of cost challenges.


Shaoxing Textile and chemical fiber companies pay attention to

Electricity charges have changed

Recently, some electricity price policies in Shaoxing, Zhejiang have been adjusted.

However, with high temperatures, electricity load exceeding record highs, and large-scale electricity price adjustments likely to come, textile companies may need to prepare in advance to meet a new round of cost challenges. - DayDayNews

According to the relevant provisions of the "Zhejiang Provincial Development and Reform Commission's Notice on Matters Related to Adjustment of Catalog Sales Electricity Prices in Our Province" (Zhejiang Development and Reform Commission [2021] No. 377), Shaoxing's large industrial time-sharing periods and electricity prices have certain time periods and electricity prices in July and August. The adjustments are as follows:

Change 1: Time period change

Large industrial users

3:00-15:00 in the two months of 17 and 8 has been adjusted from the original peak period to peak period. After the adjustment, the period is divided as follows:

Peak period : 9:00-11:00, 13:00-17:00

Peak hours: 8:00-9:00, 17:00-22:00

Low hours: 11:00-13:00, 22:00-times 8:00

Details can be found in the table below:

However, with high temperatures, electricity load exceeding record highs, and large-scale electricity price adjustments likely to come, textile companies may need to prepare in advance to meet a new round of cost challenges. - DayDayNews

General industrial and commercial users

The time period for general industrial and commercial users will not be changed. The time division is still:

Peak period: 19:00-21:00

Peak period: 8:00 -11:00、 13:00-19:00, 21:00-22:00

Trough period: 11:00-13:00, 22:00-8:00 the next day

For details, please see the table below

However, with high temperatures, electricity load exceeding record highs, and large-scale electricity price adjustments likely to come, textile companies may need to prepare in advance to meet a new round of cost challenges. - DayDayNews

Change 2: Changes in electricity bills

7, 8 two For monthly industrial time-sharing users, the provincial power company will calculate the electricity bill after increasing the peak electricity price by 2 points and reducing the off-peak electricity price by 2 points based on the original time-of-use electricity price. The expenses incurred due to the adjustment of peak electricity prices and off-peak electricity prices will be included in the profit and loss settlement. It is not regarded as income of the electricity sales company. General industrial, commercial and large industrial fixed price users are not affected by the above changes.


Weaving, printing and dyeing, and chemical fiber companies in Jiangsu and Zhejiang have "increased electricity prices"

Profit shrinkage has worsened

Rising electricity prices have directly increased production costs, and corporate profits will be more affected.

In fact, Jiangsu and Zhejiang are areas with scarce electricity resources. The government often improves local electricity consumption through measures such as increasing electricity prices, limiting electricity consumption, and off-peak electricity consumption. As a result, the monthly electricity bills of many large and medium-sized weaving companies will be more than 10,000 yuan, and the electricity bills of companies with high energy-consuming equipment such as texturing will increase even more. In particular, the profit growth rate of the textile industry has slowed down in recent years, and some subdivided industries have even experienced profit shrinkage. Especially in the recent past, there has been huge cost pressure due to factors such as raw materials, freight, exchange rates, and . The rise in electricity prices directly increases the production costs of weaving enterprises, and the production of enterprises is further affected.

According to information, in textile factories, electricity is a very high cost expenditure after raw materials. Especially for enterprises with a relatively high degree of automation, the cost of electricity is already higher than the labor remuneration expenditure. Take a textile company with 2840 water-jet and air-jet looms with an annual output of 70 million meters as an example. The annual electricity bill is about 4-5 million yuan, and the company's labor expenditure is also 3-4 million yuan.

Let’s take a look at the important printing and dyeing companies in the textile industry chain: Taking a factory with annual sales of 200 million yuan as an example, the annual electricity bill is 7-8 million yuan, and the cost of worker wages is also 7-8 million yuan. The cost expenditure The annual consumption of dyes and coatings, the largest component, is only about 20 million yuan.

In terms of chemical fiber factories, electricity costs are a very high cost expenditure after raw materials. Especially for enterprises with a relatively high degree of automation, the cost of electricity is already higher than the labor remuneration expenditure.

The direction of the epidemic is still the biggest variable in the market. Many industry insiders pointed out that textile companies need to always pay attention to unexpected factors such as the epidemic, energy, and weather. These unexpected factors will directly or indirectly affect market supply and demand, leading to deviations in market trends. It is understood that many textile companies are short of orders, and the high temperature in summer will usher in the holidays. Some companies believe that the Southeast Asian orders that returned in the early stage have been lost again. Coupled with the arrival of the off-season, the domestic textile market will be sluggish for a while. In addition, the raw material market is in a slump, and low-priced raw materials and cost pressure may further reduce demand, especially domestic trade orders.

Source reference: In Keqiao , Shaoxing Development and Reform, Internet and other public channels

Editor: Chemical Fiber Bang New Media Team

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