Dye Prices Are Rising! Some People Are Happy That Someone Is Worried!

- Sep 27, 2019-

According to media reports on the 16th, the full range of disperse dyes has been raised by 10%, the full range of reactive dyes has been raised by 5%, and the price of intermediate phenylenediamine has also been raised to 100,000/ton.

The second round of price increases came from the price increase period that rose in July. The data shows that the transaction price of reactive dye black has risen from 23-24 yuan/kg to 28-30 yuan/kg, and this price continues to rise.

What is the reason for the price increase of dyes?

Dyes can be classified into natural dyes and synthetic dyes from the source, and synthetic dyes are usually used in large-scale production.

2-Methylanthraquinone Refined CAS No. 84-54-8 suppliers told us that Currently, the market is mainly classified into disperse dyes, reactive dyes, sulphur dyes, etc. according to their properties and methods of use. Disperse dyes account for nearly half of the entire dye market, so it is also one of the most concerned products in the market.

The biggest reason for the price increase of dyes is environmental protection. The National Day is approaching, and all production enterprises north of the Yellow River will stop production and emission reductions from September 1. This will result in a larger supply shortage of dye raw materials compared to last year, and the price will naturally rise.

CICC Li Wei believes that the recent environmental protection and safety inspectors are becoming stricter, and the production capacity of disperse dyes and dye intermediates is still limited. After the spontaneous water explosion accident, a number of dye intermediate companies were affected. At present, most of the dye production capacity in northern Jiangsu is still waiting for the government to resume production, and about 12% of the capacity of the disperse dye industry is still affected.

Downstream, the restructuring of the domestic textile and garment industry, capacity transfer and the conversion of new and old capacity will become a long-term trend, and is accelerating. The traditional peak season of “Golden September and Silver 10” is coming, and the recovery of textile demand is expected to drive the dye industry's prosperity.

How do leading companies view it?

2-Methylanthraquinone Refined CAS No. 84-54-8 manufacturers mentioned that In fact, in early September, Bauxite began to raise the price of dyes. The price of conventional disperse dyes was raised by RMB 2,000/ton, and the performance of reactive dyes was increased by RMB 1,000/ton. Subsequently, dye manufacturers have opened the way to price increases.

The printing season of the printing and dyeing factory is the golden nine silver. In July and August, the price of disperse dye black and the transaction price of reactive dye black have exceeded the lowest price of dyes in the past two years. The bottoming out of the price of dyes after falling into the bottom is also an important reason for this round of price increases, and it is expected that there will be a strong demand release.

Multiple factors such as bottoming out and superimposed environmental protection have promoted the price increase of disperse dyes. It is expected to continue to rise in the third and fourth quarters, and there may be a narrowing of the increase in the fourth quarter.

In 2019, the company achieved operating income of 3.27 billion yuan in the first half of the year, net profit of 830 million yuan, a year-on-year increase of 17.2%, and a net profit of 630 million yuan, a year-on-year decrease of 9.9%. Among them, Q2's net profit per month was 570 million yuan, a year-on-year increase of 42.0% and a year-on-year increase of 117.7%.

However, when asked whether traders and dyeing factory sales staff will increase their fees, most of them said that many dyeing factories are not full at present. "Now that is the elastic fabrics, the market list is coming to an end. Therefore, the probability of dyeing will not increase.

"Dyeing factory as a heavy-asset enterprise, the proportion of dye costs is not large, as the first half of the year, the impact of dye soaring on the dyeing factory is huge, this time the dye rose by about 10%, the impact is not great.

Polyester raw materials are also rising fast, falling fast, and the cloth boss is happy or worried?

In addition to dyes, the raw materials market in the first two days also opened a wave of price hikes. Due to the attack by Saudi drones, crude oil-related raw materials were all blushing.

On the evening of the 17th, the market received news that Saudi oil production will recover faster than expected, is close to recovering 70% of the loss of 5.7 million barrels per day, and will fully recover in the next 2-3 weeks. As a result, the price of late Brent crude oil and US crude oil futures plummeted, and the decline expanded to 6%.

PTA futures also fell, and the 2001 contract fell 82 points to 5280, down 1.53%.

For the price increase in the previous two days, the cloth boss is most expecting that the raw materials will rise and the price of the cloth will increase. Although the rise in the price of cloth is highly correlated with the price increase of raw materials, in general, the rise in the price of cloth has a certain lag. It can be seen from past experience. Moreover, due to the drag of the market, the demand for terminals is insufficient. Reduced, the fabric factory is in a hurry to throw goods to inventory, at this time the price increase, customers will not easily accept.

A fabric dealer who made peach skin and Chun Yafang in Pingwang area said: "In the past, the order quantity was 1 million and 500,000 meters. This year, there are only 50,000 and 100,000 meters. Although the list is coming down one after another, but the quantity is reduced, the stock of grey cloth in our factory has reached a historical high!

Many products can only be guaranteed, and the profit is around 3%. Under this circumstance, we definitely want to raise the price slightly by the price increase of raw materials. ”

But there are still other people in the market, but they don't want raw materials to go up. The price of raw materials is stable and they are very happy.

In July, because the price increase of raw materials was too large, it was difficult for the price of the fabric to keep up with the increase in raw materials. The textile companies once held a group to issue a statement and the event was still vivid.

Although the raw materials have risen too much recently, but the duration is not long. In the end, there is no support for downstream orders. Any price increase has no confidence. The downstream weaving industry is weak, the grey cloth shipments are slow and small, and the grey cloth inventory pressure Larger.

At this later date, the textile industry will improve!