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Pick Up Chinese Dyestuff Industry Growth Of Supply And Demand

Aug 26, 2016

Dye industry in China textile industry and raw materials demand and increases in exports promoted have made significant progress over the past ten years. At present, China is the first big world dyestuff production, accounted for more than 70% of world dyestuff production. According to statistics of China dyestuff industry association, the "Twelve-Five" period, China dyestuff industry output grew 8%, production is expected to rise 4.5%. In 2015, the total dye reached 922,000 tonnes. While China is also the largest exporter of dyes, by 2016 in the second quarter, then disperse dyes in China today exports amounted to 57,000 tons, an increase of 18.08%, reactive cumulative exports nearly 19,000 tons, up down 13.14%.

From the production area, and dye production enterprises in China are mainly concentrated in Zhejiang, Jiangsu, Shandong, Tianjin and other places, where the largest production scale of Zhejiang Province, completed in 2015, the annual production of more than 590,000 tons, accounted for 64.64% of the total, and 40% per cent of world production. Also, a few 60% more than the total industry capacity, form the pattern of an oligopoly.

"Supply and demand patterns triggered + monopoly bargaining catalytic" promote dyes and intermediates prices continued to rise

Since May of last year, dye industry into the inventory stage, continued weakness in the downstream market demand led to Cliff-fall in prices of dyes and intermediates, disperse black ECT300% black WNN200% price and activity fell to 16,000 yuan/ton and 18,000 yuan per ton, down more than 50%. To inventory, because of environmental issues for a long period to stop production increase effect and peak season for traditional textile and raw materials, dyes and intermediates in tight supply situation, firms price willingness is strong, prices appear more substantial gains since March. Under the combined effect of initiator and catalyst, price highest gains Super-70% disperse dyes, dyes price rose more than 50%. And downstream of dyeing and printing enterprises because of low concentration, does not have the strong ability to resist price increases.

"Summit on environmental protection high visibility +G20" to promote stricter supervision, accelerate industrial restructuring

In recent years, the continued exposure of the dye business illegal waste discharge case prompted the dye industry energy-saving environmental protection, green growing production topics. The 16th China International dye industry, and organic pigments, textile chemicals exhibition, senior engineer of China dyestuff industry Association points out that in the "Thirteen-Five" plan to upgrade a clear ecological safety and environmental protection is an innovative focus, through the pigment manufacturing optimization and upgrading of the entire process, avoid and reduce harmful organic impurities in the production process, reduce pollutants and emissions. In September this year will be the G20 Summit will be held in Hangzhou environmental protection to new heights. Starting from the end of last year, Zhejiang, dyes, printing and dyeing industries of high pollution clean up, backward high-polluting capacity, establishment of environmentally-friendly recycled in new capacity. Meanwhile, Zhejiang, Jiangsu and other highly polluting enterprises issued production programmes of limited duration to ensure the environment around the venue during the G20. Under the influence of these events, and dyeing industries will be adjusted, will likely have an impact on supply and demand in the short term, will be phased out in the long term more backward production capacity, improve the strength capacity concentration, conducive to the development of firms.