China's dye industry has made significant progress in the past ten years, driven by the increasing demand and export volume of the downstream textile industry
At present, China is the world's largest dye production country, accounting for more than 70% of the world's total dye production
According to the statistics of China Dyestuff Industry Association, during the "Twelfth Five-Year Plan" period, the average annual growth rate of the total output value of China's dyestuff industry was 8%, and the average annual growth rate of output was 4.
In 2015, the total output of dyestuffs reached 922,000 tons
At the same time, China is also the largest exporter of dyes.
As of the second quarter of 2016, China’s cumulative export volume of disperse dyes reached 57,000 tons, an increase of 18.
08% year-on-year, and the cumulative export volume of reactive dyes was nearly 19,000 tons, a year-on-year decrease of 13.
From the perspective of production areas, China's dye production enterprises are mainly concentrated in Zhejiang, Jiangsu, Shandong, Tianjin and other places.
Among them, Zhejiang has the largest production scale.
In 2015, the province completed an annual production of more than 590,000 tons, accounting for 64.
64 of the country's total output.
% And more than 40% of the world's total output
Moreover, a small number of companies account for more than 60% of the production capacity of the entire industry, forming an oligopoly pattern
"Supply and demand pattern triggers oligopoly bargaining catalysis" to promote continuous rise in dye and intermediate prices
Since May last year, the dye industry has entered the destocking stage, and the downstream market demand continues to be weak, causing the prices of dyes and intermediates to fall precipitously.
The prices of disperse black ECT300% and reactive black WNN200% once fell to 16,000 yuan/ton and 18,000 yuan.
Yuan/ton, a drop of more than 50%
Affected by long-term inventory destocking, increased production shutdowns due to environmental issues, and the traditional peak season of downstream textiles and apparel, the supply of dyes and intermediates has been tight, and oligarchs are willing to increase prices, and product prices have risen sharply since March
Under the combined effect of initiator and catalyst, the price of disperse dyes rose by more than 70% when the price was highest, and the price of reactive dyes rose by more than 50% when the price was highest
However, downstream printing and dyeing companies do not have strong resistance to price increases due to their low concentration
The “G20 Summit with High Exposure of Environmental Issues” promotes increasingly strict regulations and accelerates industrial transformation
In recent years, the continuous exposure of dye companies' illegal waste discharge cases has promoted the topic of environmental protection, energy saving, and green production in the dye industry
At the 16th China International Dyestuff Industry, Organic Pigments and Textile Chemicals Exhibition, senior engineers of China Dyestuff Industry Association pointed out that in the "13th Five-Year Plan", ecological safety and environmental protection upgrades will be the focus of innovation.
The optimization and upgrading of the entire dyeing and pigment manufacturing process avoids and effectively reduces the generation of harmful organic impurities in the production process, and reduces the generation and discharge of pollutants
The G20 summit to be held in Hangzhou in September this year will also push environmental issues to new heights
Since the end of last year, Zhejiang and other places have rectified the high-polluting dyes, printing and dyeing industries, eliminated outdated high-polluting production capacity, and established environmentally friendly and recyclable new production capacity
At the same time, Zhejiang, Jiangsu and other places have introduced plans to stop production for a limited period of time for high-polluting enterprises to ensure the environment around the venues during the G20 period
Affected by these events, the dye industry will make adjustments, which may affect the relationship between supply and demand in the short term.
In the long run, more backward production capacity will be eliminated, and the concentration of advantageous production capacity will be increased, which is beneficial to the development of oligarchs