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    Behind The Price Increase Of Dye Industry

    2013/7/31 10:22:00 24

    Dyestuff IndustryGarment IndustryTextile Industry

    < p > recently, dye leading enterprises have raised prices again, and the price range of disperse dyes has increased by about 2000 yuan per ton, and the price increase has reached 9%.

    Zhejiang Longsheng official said that the current price of disperse dyes in the company was 25 thousand yuan ~2.6 million yuan / ton, up about 2000 yuan / ton compared with the previous 23 thousand yuan ~2.4 million yuan / ton.

    In early 2013, the price of disperse dyes was 16 thousand and 500 yuan / ton.

    The company also confirmed the fact that the price of disperse dyes increased.

    Why do dye industry raise prices? Let's look at it together.

    < /p >


    < p > < strong > downstream depression < /strong > < /p >


    < p > < strong > why the price of dye will continue to rise? < /strong > /p >


    < p > industry insiders say that this is mainly due to the concentration of disperse dyes in 90% of the Zhejiang area. Zhejiang Longsheng, Ru Tu shares, Hangzhou Ji Hua's capacity accounts for 74% of the total capacity of the industry, and reactive dye production capacity is mainly concentrated in Hubei gorgeous, Zhejiang Longsheng, Taixing Jinyun (Chuan Hua stock company), and Ru Tu shares, accounting for 85% of the total capacity.

    This leads to < a href= "http://sjfzxm.com/news/index_c.asp" > dye industry < /a > now has formed a duopoly monopoly pattern. Zhejiang Longsheng and run earth shares occupy 35% and 30% of the disperse dye market respectively, ranking the top and top spot in the industry.

    Over the past two years, the price of dyes has been falling, because they have adopted a strategy of price reduction, competing with each other, resulting in a sharp fall in the price of disperse dyes and reactive dyes.

    Among them, disperse dyes fell to around 16 thousand yuan per ton, a new low in recent years.

    Dye prices continue to decline, the industry's profitability continues to decline, making dye manufacturers basically no expansion of willingness, or even cut production, industry concentration gradually increased.

    < /p >


    < p > at the beginning of this year, the oligopoly industry from competition to cooperation game.

    The litigation settlement of Zhejiang Longsheng and intercontinental shares indicates that the competition in the dyestuff industry has shifted from competition to oligopoly. This indicates that the dyestuff industry has moved from competition to cooperation. The leading enterprises have continuously restricted the small dye enterprises with the "patent" as the sword, and expanded their own profitability. Moreover, environmental protection and patent have obviously exceeded the industry supply constraints. Through the "patent sword", the enterprises have effectively integrated the main disperse dyes manufacturers and deterred potential entrants.

    And the pollution of dye industry is heavier. Due to frequent environmental pollution incidents in China, many factories are forced to close down under the constraints of policy and environmental protection, which further restrict the supply of industries.

    < /p >


    < p > environmental protection requirements are becoming more stringent and high cost is also an important factor that causes dye prices to rise.

    According to the reporter, during the "12th Five-Year" period, the state put forward more stringent requirements for the dyestuff industry in terms of environmental protection. < a target= "_blank" href= "http://www.91se91.com/" > textile > /a > the environmental protection of products and textile production has been highly valued, and no toxic and pollution-free "green fabric" has become the mainstream of production and consumption.

    In addition, dye products will be more widely used in aerospace, pportation, sports, health, national defense and other fields, which also put forward higher requirements for the technology and environmental protection of products.

    < /p >


    At the same time, in November last year, Longsheng and run soil shares in Zhejiang came to court due to patent litigation. Dealers began to inventory because they expected the price of dyes to drop and the pressure of funds at the end of the year was bigger. This led to relatively small inventory of dealers at the beginning of this year.

    < /p >


    < p > < strong > peak season is coming soon < /strong > /p >


    < p > < strong > will dye prices continue to rise? < /strong > /p >


    < p > there is a polarized view in the industry. It is believed that the rise will be concentrated in the dyestuff industry. Their point of view is: immediately usher in the peak season of 8~11 months, the downstream demand will rise, and the profit and ability of printing and dyeing links and the cost pfer will be strong, so as to reserve potential for dye.

    < /p >


    "P > dye and upstream intermediates environmental protection is the trend of the times.

    Due to the fact that dyestuff manufacturers belong to high wastewater discharge units, and since 2013 there are many groundwater problems, dye enterprises are expected to face more stringent effluent discharge standards.

    Some of the producers of dye intermediates in small and medium-sized enterprises will be phased out because of environmental problems.

    Therefore, the environmental cost of dyestuff manufacturers will become higher and higher in the future.

    The rising cost of environmental protection will drive up the price of intermediates and gradually increase the actual cost of dyes. The price of dyes will also rise.

    < /p >


    < p > in addition, Longsheng acquired the intellectual property rights patent of the world's largest dye factory, and the competition of the whole industry is actually more brutal.

    Therefore, the price of dye in the peak season still has room for improvement.

    < /p >


    < p > but there are also people in the industry who predict that the price of dye will not rise in the future.

    The reason is that the current textile a target= "_blank" href= "http://www.91se91.com/" > clothing < /a > Terminal prosperity is not high, the market therefore doubts whether the dye profits can be sustained.

    Downstream terminal demand is limited, printing and dyeing enterprises profit compression.

    < /p >


    < p > at present, the poor customer demand of downstream terminals causes some printing and dyeing manufacturers to order less. At the same time, due to strict environmental requirements, the cost pressure of printing and dyeing enterprises has increased, and in addition, the price of dye has been rising in the early stage.

    At present, the profit of small and medium dyeing mills is under pressure. Many enterprises have already given up the printing and dyeing orders and stopped production and maintenance.

    < /p >


    < p > patent infringement litigation in dye industry has limited practical impact on industry supply.

    With the strengthening of the awareness of intellectual property protection, the production enterprises will pay more and more attention to the protection of intellectual property rights, including applying for various patents.

    < /p >


    < p > in addition, the price of disperse dyes is much higher than that of reactive dyes. The main three enterprises of disperse dyes occupy most of the market share of the industry. The concentration ratio of disperse dyes is much higher than that of reactive dyes. In addition, reactive dyes are hamper by India.

    Due to the lower demand for downstream terminals and the decline in the enthusiasm of dealers to take delivery, it is expected that the price of disperse dyes will continue to rise sharply in the late stage, which lacks fundamental support.

    < /p >

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