Review Of China's Dyestuff Industry In 2018 And Analysis Of Industry Development Prospects

1. Review of the development of dyestuff industry: the Xiangshui incident has changed the depth of the industry pattern and the industry concentration has been further promoted.

Dyestuff is a kind of organic compound which can make other substances get bright and strong color. Because the pigment used now is synthetic, it is also called synthetic dye. According to nature and usage, dyestuffs are divided into disperse dyes, reactive dyes, sulphur dyes, reducing dyes, acid dyes and direct dyes. Among them, disperse dyes and reactive dyes are the main products, and the two output accounts for about 80% of the total output. China's dyestuff manufacturing industry has been growing along with the development of downstream printing and dyeing industry. After 1990s, the adjustment of China's reform and opening up and the world textile industry pattern promoted the rapid development of China's dyestuff industry. By 2004, China's dyestuff production ranked first in the world, accounting for about 60% of the total dye output in the world.

The main dyes produced in our country include disperse dyes, reactive dyes, sulphur dyes, acid dyes, direct dyes and vat dyes. Disperse dyes and reactive dyes have the largest output and export in several kinds of dyes in China. The above two kinds of output account for 79% of the total dye output.

Proportion of dyestuff composition in China

Data source: public data sorting

During the "12th Five-Year" period, the total output value of China's dyestuff industry was 250 billion 460 million yuan, an annual average growth of 8%, the total sales revenue of products was 237 billion 60 million yuan, the annual growth rate was 6%, the total profits and taxes were 33 billion 230 million yuan, the annual growth rate was 22.2%, and the total output of dyes was 4 million 337 thousand tons, with an average annual growth of 4.5%. In the beginning of 13th Five-Year, the dyestuff industry achieved steady progress. The total industrial output value in 2016 and 2017 reached 59 billion 850 million yuan and 62 billion 100 million yuan respectively, and the sales revenue of products was 53 billion 180 million yuan and 59 billion 100 million yuan respectively, and the output was 928 thousand tons and 990 thousand tons respectively. It is estimated that sales of dyestuff industry in China will exceed 60 billion yuan in 2018 and output will exceed 1 million tons.

After years of continuous capacity expansion, China's dyestuff industry has developed into the number one in the world, but overall, the production is dominated by low-end conventional products. Most of the low-end products have significant overcapacity. In recent years, with the upgrading of environmental protection standards, a large number of small and medium-sized enterprises have been forced to stop production and rectification, and the total capacity of dyes has stopped growing, and the operating rate of the industry is at a low level.

Output of dyestuff industry in China in 2016-2018 years

Data source: public data sorting

Sales revenue of dyestuff industry in China in the past 2016-2018 years

Data source: public data sorting

Production and import and export of dyestuffs in China

Data source: public data sorting

Production capacity of disperse dyes

Data source: public data sorting

Production capacity of reactive dyes

Data source: public data sorting

After years of fierce market competition and elimination, coupled with the strict environmental inspection initiated in 2016, the overall supply of the chemical industry has been tightened. The capacity for continuous production of environmental protection has not been up to date. The concentration of the dye industry has been continuously improved, and the pattern of oligopoly in the whole industry has basically been formed. In 2018, the concentration of disperse dyes in China was nearly 80%, the reactive dyes were relatively dispersed, and the number of small and medium-sized enterprises was more, but CR5 also reached 66%. CR5 With the normalization of environmental constraints, some small and medium-sized production capacity which is difficult to start will gradually withdraw from the market. The supply of dye industry is difficult to upgrade in the future, and the new capacity is very limited. At present, the planning is basically based on the expansion of leading enterprises, and the industry concentration in the future is expected to further improve.

Disperse dye capacity ratio

Data source: public data sorting

Reactive dye capacity ratio

Data source: public data sorting

In March 21, 2019, a major explosion occurred in tianjiayi chemical industry in Xiangshui Chemical Industrial Park, Jiangsu, Yancheng City, killing about 70 people and injuring hundreds of people. In April 4th, the Yancheng municipal Party committee held a meeting to close the Xiangshui Chemical Industrial Park. The enterprises in Xiangshui eco chemical park closed up to more than 40 thousand tons of disperse dye capacity, 6 thousand and 500 tons of reactive dye capacity, 17 thousand tons of disperse dye intermediates and two tons of amine, and 10 thousand tons of reactive dye intermediates. The closure of the park will lead to a shortage of related products, thereby driving up its price. In particular, the intermediate concentration of disperse dyes intermediates two amine is extremely high, and Tian Jiayi chemical was originally its second largest supplier. Its shutdown resulted in a sharp rise in the price of interphenyl two amine, which will drive the rising price of disperse dyes. On the other hand, it will increase the production cost of the industry and bring new opportunities for the leading enterprises in the industrial chain layout.

Because of the relatively small scale of the enterprises in the dyestuff industry, most enterprises produce relatively simple products. At present, they can establish their own sales network and their own product systems and standards, and have the ability to directly sell products to the direct customers or the dye enterprises with such demand. China's dyestuff industry has shown obvious regional characteristics. Zhejiang and Jiangsu are two major dyestuffs provinces. After the Xiangshui incident, the whole country, especially in Jiangsu Province, has intensified its efforts to control the dyestuff industry. In April 1st, the Jiangsu provincial government general office issued the "Jiangsu chemical industry upgrading plan (Draft)", which required further reduction of the number of chemical enterprises, the reduction of chemical industrial parks, the restriction of new projects, and the prohibition of new (expanded) construction of pesticides, pharmaceuticals and dyestuffs intermediates. The strengthening of Jiangsu province's regulation efforts is expected to lead to continuous shrinkage of production capacity, and the continuous improvement of environmental protection requirements also provides good opportunities for development and broad market space for enterprises with brand, technology and management advantages in the industry. Under the condition of limited environmental protection and large fluctuations in industry, the downstream printing and dyeing industry is located in the regional distribution and industrial transfer.

In 2016, the domestic production of disperse dyes was mainly concentrated in Zhejiang Longsheng, Ru Tu shares and Jihua Group three enterprises, CR3 about 70%. The production capacity of reactive dyes is higher than that of Zhejiang Longsheng, run soil shares, Hubei Chu Yuan, Taixing pheasant and anoqi enterprises, and CR3 is close to 50%. Compared with disperse dyes, small and medium sized manufacturers of reactive dyes are more, and there is still room for future market concentration. Downstream printing and dyeing industry concentration is relatively low. Besides, once dye suppliers enter the supply system of printing and dyeing enterprises, printing and dyeing enterprises will not be replaced easily. Because the replacement of suppliers will prolong their production cycle and affect the printing and dyeing effect. Therefore, downstream customers of dyes have relatively high user stickiness.

Higher industry concentration brings stronger bargaining power, leading enterprises are more likely to reach a tacit understanding to jointly promote the price of dye. At the same time, the scale benefit and the increase of market pricing power will make the larger enterprises in the industry get higher economic benefits, accelerate the differentiation of industries, and further enhance the concentration of the industry. From the main listed companies in the industry. In 2018, China's dye Zhejiang Longsheng annual sales revenue reached 19 billion 75 million yuan, ranking first. The sales revenue of run Tu shares, Haixiang pharmaceutical and anoits were 6 billion 421 million yuan, 27.19 yuan and 1 billion 160 million yuan respectively, and four enterprises accounted for 36% of the whole industry's sales revenue. It is expected that this pattern will continue in the future.

Capacity ratio of two benzyl amine

Data source: public data sorting

Regional distribution of dye productivity

Data source: public data sorting

In 2018, with the commissioning of some large dyestuff technology expansion projects, China's dye supply capability will be further improved. However, considering that most of these projects are large domestic manufacturers, the leading dyestuff factories will have a more significant impact on the market supply and demand in the long-term strategic planning. Therefore, the old dye manufacturers will not rush to release the new capacity if the downstream demand of dye has not improved significantly.

As for the demand side of dyes in 2018, the downstream printing and dyeing industry will still take a smooth transition, energy conservation and emission reduction, and eliminate backward production capacity as the main task. Therefore, overall, the supply and demand pattern of dyestuff industry will remain relatively stable in 2018, and attention should be paid to the release process of new capacity.

In 2018, the price of dyestuff market is expected: in the influence of the weak supply of supply and demand pattern in the dye market and the diversion of the right of speech brought about by the adjustment of the industrial chain structure, it is estimated that the average price of the dye market will increase slightly in 2018 than that in 2017, but the overall upward space is small, and the increase will be estimated at about 5%, and the price fluctuation interval in the same year will hardly increase. Disperse dyestuffs are expected to show a marked increase in the marketing strategy change of large factories, with an estimated increase of around 20%, and the uplink of low end prices or higher than that of high-end prices.

Two. Foreground analysis of dyestuff industry

1, we should promote transformation and upgrading of industries and optimize industrial layout. Although China has become the largest dye producer in the world, compared with the developed countries, the technological innovation of the industry still has great room for development. Some leading enterprises, with high level of product development and core competitiveness, play an obvious leading role in driving, directional and strategic aspects. Dyestuff enterprises take market as the guidance, constantly push forward the adjustment of product structure and adaptability and difference, and implement brand strategy.

The direction of research and development of new dyes is focused on the color needs of textile fiber development, while the quality improvement, energy conservation and consumption reduction of old products are also concerned, so as to meet the development requirements of new dyeing and finishing processes. Dye enterprises cater to the new demands of market development, meet the requirements of new technologies, new fibers and energy saving and emission reduction in the textile and dyeing industry, and bridge the gap between the research and development ability of new dyes and the advanced level of foreign countries.

2, strengthen technological innovation and independent innovation to enhance the international competitiveness and sustainable development ability of the industry.

China's dyestuff industry already has the ability to innovate in the industry. Innovation is the cornerstone of the future development of enterprises, and also the source of enterprises to expand market share and maximize profits. In the future, the dyestuff industry will It is a capital intensive, technology intensive, talent intensive, innovative industry with high investment and high return. It will become a new normal for Chinese dyestuff enterprises to be created by China.

3. Integration and automation of production mode, upgrading modernization of production equipment.

At present, the production of dyestuffs in China has been improved through technological transformation and technological improvement, but most of them are still operated in extensive, open, intermittent and labor-intensive manner. The emergency handling ability of two environmental protection and safety is poor, and the reaction control is not precise enough, resulting in unstable quality of products and difficult to meet the requirements of yield. First, the waste of raw materials is caused, the two is the reaction products and isomers, three is the pressure on subsequent waste treatment, and also the production cost is increased, so that the competitiveness of the international market is not high.

4, environmental regulation is stricter, and the trend of survival of the fittest in the dyestuff industry is accelerating.

For a long time, China's environmental protection industry has a "heavy investment, light regulation" governance ideas, while environmental investment has increased substantially, supervision and law enforcement efforts are not enough to lead to the actual operation of environmental protection facilities and facilities, and a large number of enterprises that do not have corresponding strength enter the dyestuff industry. With the accelerated establishment of a long-term mechanism for environmental regulation, the state's supervision on environmental protection has continued to increase. Especially after the implementation of the new environmental protection law, some small and medium enterprises that fail to meet the standards are basically in a state of rectification, semi shutdown and shutdown. They play a positive role in the market environment of the purified dye market, and enterprises and production capacity that do not meet the environmental protection requirements are gradually eliminated from the market.