Disperse Dye Prices Will Rise Sharply In The Market

In fact, the price expectation of disperse dyes is long established.

In the middle of 9 this year, Ningxia Ming Sheng dyeing and finishing Co., Ltd., the largest producer of reducing products in China, was ordered to permanently shut down because of illegal sewage disposal. The industry then predicted that the occurrence of the incident would be good for disperse dyes because the reducing substance was an important intermediate for the production of disperse dyes.

However, affected by the unexpected downturn in the downstream printing and dyeing Market, although the price of reducing substances has surged from 33 thousand yuan / ton to 100 thousand yuan / ton in the short term, the price of disperse dyes has yet to rise. At the same time, the attention and patience of dyes in the capital market have begun to fade away.

The price increase of disperse dyes is expected to rise again. On the one hand, after several months of consumption, the inventory of dye inventories, especially dealers, is basically empty. The effect of the results is upward. That is to say, the delivery volume of dyestuff enterprises has increased significantly, and the volume of dye companies' delivery in December has almost reached 2~3 times that of November.

On the other hand, due to environmental reasons, Hangzhou's fifth major disperse dye enterprises, Yutian science and technology 25 thousand ton production capacity, were completely shut down two weeks ago. The incident has also increased the market's expectation of disperse dyes to a certain extent.

Dye dealers are also somewhat cautious about rumors that prices of disperse dyes will soon increase in the market. At present, the volume of disperse dyes in dye factories is relatively large. Because of the limited inventory of dealers, they will replenish their stocks even if prices are high.

But the situation shows that the printing and dyeing Market is still not good at present, and the operating rate of some large factories is only around 50%.

At present, the reduction market remains unchanged, that is, the price is about 100 thousand yuan / ton, but the turnover is still limited, and some small factories are beginning to appear in the market.

The industry expects that the inventory of the reduction industry is around 2 months, which means that the supply of the whole market can still be maintained until the Spring Festival.

But after the Spring Festival, there will be a serious shortage of reducing substances, so the production of disperse dyes will be a problem.

There is no hope that the new plant will be put into operation in the first half of next year. The production capacity of Zhejiang Longsheng is about 10 thousand tons / year, except for its own use.

As a traditional cyclical chemical product, many people are optimistic about the industry because its concentration is high (the top three enterprises occupy more than 70% of the market share). At the same time, the environmental sensitivity of dyestuffs is relatively high.

However, like other cyclical industries, dyestuffs are still tied down downstream, and the downstream printing and dyeing industry is not optimistic. The industry is not only overcapacity but also quite dispersed.

According to common sense, after 9 and October, it also returned to the original.

After the boom, the price of disperse dyes should also rise. However, because of the poor printing and dyeing Market, disperse dyes have been dragging no price.

In January 1st next year, after the implementation of the new environmental protection law, the overall environmental protection will still be more beneficial to the dyestuff industry than that of the dyestuff industry.

But at the same time, the downturn in downstream demand will be the biggest negative point for the dyestuff industry.

The domestic printing and dyeing industry is indeed in a predicament. Apart from the slow growth of the macro-economy, the industry will be faced with competition from Southeast Asia and other countries. The textile and garment industry in Southeast Asia is rising rapidly. So will the printing and dyeing industry in the future.

Under such circumstances, the rising cost of raw materials such as dyestuffs will cause great pressure on printing and dyeing enterprises.