When dye, chemical intermediate, and crude oil prices rise almost simultaneously, the cost pressure on the textile chain is no longer an occasional event in one segment but a systemic signal transmitted along the production chain. Keqiao and its neighboring printing and dyeing clusters have collectively adjusted dyeing fees at the tail of the traditional off-season, which appears to be a passive response to costs but is actually a proactive rebalancing of capacity and prices.
The Industrial Logic Behind Dyeing Fee Hikes
Multiple textile clusters, including Shangrao, Jiaxing, and Shaoxing Keqiao, have successively reported adjustments in dyeing fees, covering both knitted and woven categories. According to industry public data, some large dyeing mills in Keqiao and its surroundings have raised fees for knitted fabrics by about 0.5 yuan per kilogram and woven fabrics by about 0.2 yuan per meter. Shaoxing Donglong Printing and Dyeing has adjusted prices for all greige fabric orders since August 1, with light and medium shades rising by 100 to 300 yuan per ton and dark shades by 300 to 500 yuan per ton. Behind these figures lies the direct squeeze on the profit margins of the dyeing segment caused by rising dye and auxiliary raw material prices.
From a cost structure perspective, dyes and chemical intermediates account for a significant proportion of dyeing processing costs, and upstream price fluctuations quickly alter the breakeven point for dyeing mills. Adjusting prices at this time is not simply a cost pass-through but a rational choice to repair profit margins and maintain normal equipment operation when orders are relatively limited during the off-season. Downstream customers have limited acceptance of price increases, so most mills opt for small, tiered adjustments to avoid losing orders due to sharp hikes. This moderate pricing strategy alleviates cost pressure while retaining room for future cooperation during the peak season.
Geopolitical Disturbances and Raw Material Variables
External geopolitical situations have introduced new uncertainties to the chemical raw material chain. The U.S. Central Command conducted strikes against Iranian military targets on September 1, delaying expectations for the reopening of the Strait of Hormuz, and geopolitical risk premiums pushed domestic and international crude oil futures higher. Yang An, head of the chemical division at Haitong Futures, noted that this round of crude oil trading shows domestic strength significantly exceeding external strength, with the price spread between domestic crude futures and Brent crude rapidly turning from a persistent discount to a premium.
Crude oil is the source raw material for dyes and textile auxiliaries, and its price fluctuations transmit along the chain of "crude oil—chemical intermediates—dyes/auxiliaries—dyeing and finishing." This means that even with stable dye production capacity, periodic cost disturbances at the raw material end may still be reflected in dyeing fee quotes in the coming weeks. However, the domestic chemical supply chain is well-established, and companies generally hedge risks through long-term contracts and on-demand purchasing. Market sentiment remains rational, with no panic stockpiling. Geopolitical impacts are more of a short-term variable and will not alter the overall stable operation of the textile chain.
Keqiao Market: Building Momentum for the Peak Season
As a barometer of the national textile industry, the Keqiao Light Textile City is at a critical juncture transitioning from the off-season to the peak season. Current orders for merchants are mainly small-batch sampling, preparation for autumn/winter new products, and essential replenishment, with large-scale stockpiling yet to begin. In the face of rising upstream costs, merchants are not simply passing all pressure downstream but are digesting part of the costs by optimizing product structures, maintaining quality customers, and refined operations. This game between upstream and downstream has already been projected to the trading end, while expectations for peak-season stockpiling are gradually heating up.
From a capacity perspective, off-season fee adjustments help dyeing mills complete cost rationalization before the order peak, ensuring equipment maintenance and quality control. Once September peak-season orders are released, the operating rate of dyeing and finishing is expected to rebound significantly, and the cost transmission along the chain will become smoother. For buyers, the current dyeing fee hikes mean rising fabric procurement costs, but in the long run, stable processing prices help ensure supply quality and delivery schedules.