Haining: Low Added Value Of Leather And Difficult Market Demand

In November 17th last year, the Ministry of Finance announced the scope and tax rate of China's third increase in the export tax rebate rate, and the export tax rebate rate of some chemical products value-added tax increased. Among them, the tax rebate rate of some chemical products such as leather increased to 13%. But, this kind of positive didn't bring much surprise for leather chemical industry. The continuous decline of international oil prices has led to a continuous decline in commodity prices, leading to a weakening demand for downstream enterprises of chemical products. It is understood that high inventory led to a large number of chemical products showing a Domino effect. Because of the sluggish demand in downstream industries such as construction, textiles, household appliances, automobiles and so on, many chemical manufacturers are facing greater pressure on inventory. After the sharp drop in demand, some chemical products prices have fallen, this downward trend has further spread to the upper and lower reaches of the industrial chain, thus triggering the Domino dominoes effect. The prices of all chemical products in recent years have seen a sharp decline. Sulfuric acid, hydrochloric acid, three benzene and three ene, and main organic chemical intermediates such as phenol, bisphenol A, epichlorohydrin, aniline and ethylene glycol have all seen more than 20% sharp falls in two weeks. In Haining, there are not many chemical enterprises, but there are only 35 large enterprises. They are affected to varying degrees. At the 2008 Shanghai international leather exhibition, many leather chemical enterprises decreased their foreign trade orders, and their profits dropped sharply. In the domestic market, many leather and tanning enterprises also reduced their demand for leather chemical products due to the obvious reduction in leather clothing and tannery sales. Generally speaking, the domestic situation was not good. The weakness of Haining leather chemical enterprises is also seen in the foreign trade agency of Haining leather chemical products. In a foreign trade agency, I learned that glyphosate prices plummeted from profiteering to shuffling. The price of glyphosate has dropped sharply in recent months due to the imbalance between supply and demand after the release of a large number of new capacity. At present, the market price has dropped to 26000 yuan / ton, and the industry is facing the pattern of turning from profiteering to shuffling. Comparatively speaking, the commonly used glycolic acid, hydroxyphenylacetamide, N- phenylglycine, indole acetic acid, indole acetamide, S-2,2- two methylcyclopropane carboxylic acid in leather and leather making enterprises are selling better, but they are also "snubbed in front of the door" compared with the previous two years. According to the insiders, since last October, the operation rate of leather chemical industry has been declining. Under the impact of weak market demand, many chemical products began to decrease continuously. In October, the operation rate of epoxy resin industry was only about 30%, which has dropped to the lowest level in history. Besides, in addition to the impact of the international financial crisis, the homogenization of leather products in Haining is also serious. The added value of the products is not high. In order to win customers, many chemical manufacturers and agents have reduced the price tag, which has also led to the shrinkage of profits. Wang Xiaonan: editor in charge