Dye market concentration will continue to improve profitability will improve for a long time2017.06.14 08:55
Dye products to maintain high gross margin will be the inevitable result of the future.
China has become the world's largest dye producer and trading country, in 2015 the national total dye production reached 922 thousand tons, accounting for 60-70%. In recent years, dye production and consumption growth is slowing, the downstream production of printing and dyeing cloth remained stable, which indicates that China's dyestuff industry has entered a mature stage. With the gradual deepening of environmental policy, environmental protection dyes are also increasingly recognized, the threshold of the dye industry is increasing, the market share of the industry giant steadily. The future of the industry has been planning the production capacity has been put forward, the dye industry is expected to be more focused on the market. Dye cost accounts for about 14% of the cost of printing and dyeing industry in the downstream. These characteristics determine the dye products to maintain high gross margin will be the inevitable result of the long-term development of the market.
Disperse dye market concentration is very high, the expected future gross margin will steadily increase Zhejiang Longsheng, Runtu shares and Zhejiang Jihua 70% disperse dyes have occupied the domestic production capacity, coupled with the patent binding to other enterprises, the three industry giants basically have taken control of disperse dyes from pricing, competition into a strategic cooperation, after 2013 gross margin rose steadily disperse dyes. With the improvement of the profitability of the downstream printing and dyeing industry, medium and long-term optimistic about the continued spread of disperse dyes gross margin. In the short term, the main raw materials of disperse dyes anthracene and benzene prices have a larger increase compared to last year, the cost of the center up, the future is expected to disperse dyes prices will steadily rise.
Reactive dye market concentration is not high, the activity of the dye industry competition is relatively intense market relatively dispersed more competitive, but the market is still high-end products demand for import substitution space, enterprise a piece of cake at the same time, the market competition makes the dye temporarily lower gross margin.
The factors hindering the downward price conduction of reactive dyes in printing and dyeing industry is no longer the bargaining power, but from within the industry competition, only through the upstream production enterprises integrated production to reduce the production cost and improve production efficiency, to improve the competitiveness of their products. With the future market structure is determined, long-term bullish on the substantial improvement in the gross margin of reactive dyes.