Dye Market Demand Growth Boosts Visibility And Improves Profitability.

< p > the dyestuff industry is showing the characteristics of low season. On the one hand, due to the pressure of environmental protection, the cost of dye wastewater treatment is improved, and the capacity of small and medium-sized enterprises is obviously limited. On the other hand, the downstream demand is steadily increasing.

It is reported that since mid July, the price of disperse dyes has been raised again, with a range of 500 yuan to 2000 yuan per ton, and the latest mainstream offer is 25 thousand yuan to 26 thousand yuan per ton.

The price increase is the second price adjustment since May, which indicates that the market has better affordability. With the advent of the traditional peak season in 8 and September, the price of dye is expected to continue to rise.

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< p > demand growth boosts visibility and improves /p.

< p > with the increasing pressure of environmental protection, the small and medium-sized enterprises that fail to meet the emission standards have been gradually closed down.

According to the calculation of the institutions, dyestuff wastewater treatment is very difficult. The treatment cost of disperse dye wastewater per ton is about 750 yuan, and the cost of reactive dye treatment is about 400 yuan, which accounts for about 3% of the current sales price. Coupled with fixed asset investment, most of the small and medium-sized dyestuff enterprises are under great pressure and the capacity is significantly limited.

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< p > at the same time, the demand for dye market has picked up significantly.

Customs data show that from 1 to June this year, China's < a target= "_blank" href= "//www.sjfzxm.com/" > textile < /a > and < a target= "_blank" href= "//www.sjfzxm.com/" > clothing "less than" exports increased by 12.1% compared to the same period, and the export volume reached 127 billion 210 million yuan.

This growth rate is 10.5 percentage points higher than the same period last year.

Textile and garment exports have improved, and demand for printing and dyeing has increased significantly, thereby boosting the demand for upstream dyes.

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< p > raw materials, the latest price of dye naphthol upstream of 2- is about 19000 yuan per ton, which is about 17% lower than the 23000 yuan per ton at the beginning of the year, which is also conducive to raising the gross margin level of dye enterprises.

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< p > industry competition and orderly profit increase can be less than /p.

< p > in early January of this year, the patent litigation of Longsheng and run soil shares of the industry leader reached a conciliation in Zhejiang. They also used their advantages to cooperate with each other, consciously controlled the shipment volume, and enhanced the digestion ability of the downstream in the peak season.

At present, the market share of the top 4 enterprises of disperse dyes and reactive dyes accounts for more than 2/3 of the total. The annual output of Zhejiang Longsheng disperse dyestuff is 120 thousand tons, and the capacity of the leap earth shares is 110 thousand tons, accounting for about 65% of the total disperse dye market in China.

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< p > leading enterprises have achieved effective integration of the main disperse dye manufacturers in the industry through patent protection, and deterred potential entrants, so that the gross profit margin of the industry can be maintained at a relatively high level. At present, the gross profit margins of major manufacturers are over 30%.

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< p > in addition, although the latest price of disperse dyes has exceeded the estimated 25 thousand yuan per ton at the beginning of the year, it is still at a low level compared to the highest price of 58 thousand yuan per ton in 2008, and there is still room for further expansion.

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< p > overall, the supply pressure of environmental pressure is obvious, and the duration and height of the industry boom are expected to exceed market expectations.

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