EU textile sector facing difficulty to access dyestuffs

12 Jun '14

4 min read

The shutdown of production units and strong reduction of the remaining capacity has been triggered by stricter standards for waste water by the respective environmental departments.

Mr Marchi, Director General of EURATEX reacted confirming that, “Although these regulatory moves are welcomed from an environmental stand point, it has backfired since our industry and possibly also others (e.g. tanning industry) in the EU are experiencing severe shortages and tremendous price rise of the raw materials necessary for our production. It has become apparent that the competitiveness of our industry, mainly composed of SME’s, is being extensively hampered. These conditions are threatening all the efforts made by the EU companies to innovate and produce sustainable and quality products.”

EURATEX analysis has concluded that over the past few months the price of some dyestuff has been increased by 80% at least. The intermediates going to the formulation of these dyestuffs have increased on the other hand by up to 167% - 447% (see graph)! A situation that is worrying knowing that this is now also impacting other key industries like the automotive supply chain.

In conclusion Mr Alberto Paccanelli stated that, “It seems that there will be no let-up in the price volatility. We are facing a long term dilemma as we have a strong indication that investors in China and India are walking away from the chemical sector while the biggest intermediates companies increased their “cooperation and partnership” as way to dictate and impose the price. Realising the vital need of being able to pass through the price hikes further down in the value chain, EURATEX urges European and local authorities to investigate the suspected cartel in the chemical intermediate market."

Euratex

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