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Home > News > Paint & Coating News > Prices of dyes and chemicals are soaring. Industry can't stand idly by.

Prices of dyes and chemicals are soaring. Industry can't stand idly by.

ECHEMI 2019-05-06

Prices-of-dyes-and-chemicals-are-soaring

The aftermath of the explosion of "3.21" chemical enterprise in Xiangshui, Jiangsu Province is over. On April 17, the printing and dyeing industry association of Keqiao District of Shaoxing City issued an initiative appealing to boycott the "abnormal" rise of upstream enterprises, which aroused great concern from all walks of life.

The relationship between supply and demand in the market determines the price of products. After the explosion, Yancheng City, Jiangsu Province, decided to completely close the Xiangshui Chemical Industry Park. At the same time, the Jiangsu Province Government issued a plan to improve the chemical industry and plan to reduce the number of industrial enterprises in stock. In a sense, it is inevitable that the supply-demand relationship of the printing and dyeing market will be affected and the price will rise when the expected supply side changes. It is obviously impossible for the downstream printing and dyeing enterprises to accept all price increases. But things are not so simple. In the past, some unexpected events can easily lead to such actions as borrowing opportunities, collusion and hitchhiking. Therefore, behind the price changes caused by the supply-demand relationship, not all are normal market behaviors, and it is quite common to have violations of laws and business ethics.

Initiative of Printing and Dyeing Industry Association holds that the abnormal price increase of dyes and chemicals is the result of the joint increase of production enterprises and sales intermediaries. From the legal level, if there is collusion and conspiracy between upstream enterprises in the process of price increase, it is suspected of horizontal monopoly, which is illegal. Printing and dyeing industry is the pillar industry of Keqiao, Shaoxing. The operation status of the industry not only has a significant impact on the local economy, but also on the downstream industries such as weaving, garment and home textiles. This kind of industry event involves a wide range and may eventually affect the price of people's lives. It is necessary for anti-monopoly law enforcement agencies to conduct timely investigations. From the long commercial history of China, merchants colluding in price increases are usually condemned morally, and few people associate it with anti-monopoly law violations. Now, it's time to change people's thinking habits with practical actions. In terms of business ethics, when a disaster occurs, enterprises should work with communities, employees and upstream and downstream enterprises to fight against the disaster and overcome the difficulties together. Of course, this is a high standard, and the bottom line is not to take advantage of the fire to rob. If the statement of spreading false information and creating panic psychology mentioned in the Initiative of Printing and Dyeing Association is credible, the behavior of upstream enterprises has already broken through the bottom line of business ethics and disrupted the market order. The industrial and commercial administration departments should maintain the orderly operation of the market according to law.

Of course, in a market with complex supply and demand relations, in order to minimize the adverse effects of catastrophic events and maintain the healthy operation of the market, besides relying on the constraints of laws and regulations, we also need to improve the policy level. The improvement of chemical industry is obviously necessary, but its steps and rhythm should consider as much as possible the endurance of upstream and downstream industries in the face of shocks. At the same time, the relevant policies should maintain the greatest transparency, and avoid confusion and disastrous wealth through the time of vague information.

 

Disclaimer: ECHEMI reserves the right of final explanation and revision for all the information.

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