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EU textile sector facing difficulty to access dyestuffs
12
Jun '14
Mr. Alberto Paccanelli
Mr. Alberto Paccanelli
Among the most crucial issues raised during Euratex General Assembly held on June 4th 2014, special attention was paid to the growth of dyestuffs prices.
 
Alberto Paccanelli, President of EURATEX, stressed forcefully that, “the EU high quality weavers and finishers are facing an unwarranted and difficult crisis due to unacceptable price-hikes in the dyestuffs market, which impacts the overall competitiveness of this important link of our value chain.”
 
He added,  “I solemnly call on the buyers further down the supply chain to accept to pass through prices increases to maintain the competitiveness of the European textile industry source of high-quality, high-fashion and highly sustainable products. It is a matter of solidarity as the situation is quickly deteriorating.”
 
Since one year the European industry is facing an unprecedented and not controllable growth of dyestuffs prices. This is combined with shortages in the raw materials leading to the inability to produce the fabrics in the colours and quality standard requested by contracts and unreliable delivery of dyestuffs that is causing uncertainty in the orders fulfilment. Another negative factor is long lead-time as textile companies in the EU saw their dyestuff orders slashed considerably with long delay in their delivery or cancellation of their order. 
 
Mr Paccanelli raised a warning regarding today’s situation, “The lack of ability of our small companies to pass on the costs in their supply chain due to the pressure on the prices for textiles in the world market means that many companies may simply be going out of business in the very near future, thus hampering the overall innovativeness, competitiveness and financial position of the high-quality SMEs textile producers in the EU.”
 
This situation has been confirmed by two enquiries launched by EURATEX in the last months. Those established that the maintenance of a high-quality and reactive European industry is put into jeopardy by the record growths in dyestuffs prices due to disappearance of chemical intermediates originating from China and India who have driven the competition out from alternative supply sources.
 
Examples of the most impacted intermediate chemicals include H acid, bromaminic acid and anthraquinone derivatives. Most dyestuff types have been impacted by the current raw materials market situation, including the most widely used in textile manufacturing such as reactive and direct dyes for cellulosic fibres, as well as disperse, acid and metal complex dyes for synthetics and wool fibres.


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