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The dye season is coming

2017.03.24   10:07

With the recovery of downstream demand and the advent of the industry season, dye prices are expected to continue to rise. Environmental contraction, low industry stocks, clothing demand recovery and other factors or make prices than expected. Valuation is low, the performance of the leading companies are expected to benefit from flexibility.

After the Spring Festival, the price of the dye is a common phenomenon of the seasonal rise, in February 5th the mainstream varieties of disperse dyes prices rose 3000 yuan to 26 thousand yuan / ton, for the first time in the past six months to raise prices. At present, the price of dye is still in the historical center of the low, is expected after the Spring Festival with the rise in demand for textile and printing and dyeing, dye season is expected to continue rising prices.

Environmental governance and clothing demand recovery or make prices than expected. From the supply side, the dye industry in 2016 production capacity of 1 million 330 thousand tons, environmental contraction helps to further eliminate backward production capacity, enhance the company's market bargaining power. In addition, the current dye industry inventory in a historical position, is conducive to promoting the rise in prices of dyes. From the demand side,from March to May and August to October ,the printing and dyeing industry is approaching the peak season, the gradual recovery of downstream demand. 2016 textile and apparel exports $132 billion 400 million, driven by the devaluation of the RMB and other factors, textile and garment exports are expected to gradually recover to boost the demand for dyes, or make the price of dyes than expected.

At present, the price of dyes is at a lower level. With the rise in the price of dyes, dye production capacity, the performance of large leading companies are expected to benefit from the rise in the price of dyes, profitability has been improved, the gradual restoration of market valuation.


                                                                                                                     By Hank

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