The mid year review and Outlook: of the dye market

This year,the dye industry textile upstream industry into the predicament. Continue to increase in the first half of the downward pressure of the dye industry, the slowdown in production growth,extremely difficult to sell to a marked decline in exports,the major economic indicators of various types of products were decreased.

From the market supply and demand,weak demand and rising inventory and declining industry performance.

In the half of this year,the domestic printing and dyeing mill generally underemployed,discontinued even bankruptcies have occurred,resulting in the dye domestic sharp decline,most of the dye manufacturers cut,cut,layoffs,industry-wide operating at only about 50%.

Dye industry profits and taxes in the first half of this year a total of 1.214 billion yuan,Year-on-year decline of 9.9% dye companies in more than 90% of the profits of decline,the loss-making enterprises increased (mostly small businesses). important enterprises such as Zhejiang Longsheng main first half of the year the product profit drops considerably:non-operating income substantially reduced 0.155 billionyuan,resulting in total profits tumbled 40.64%,wherein a major profit disperse dyes business price compared with the same period last year dropped sharply, revenue fell 9.65%,gross margin decline 13.08 percentage points;bissextile earth share medium-term decline in net profit of 37%;although anote its made great efforts,through increased market development efforts,innovative marketing, struggling to cope with the market problems,accelerate the development of new customers,but the first half of the year the enterprise product sales in the integrated gross margin is only 29.97%,compared to the same period last year dropped 5.76 percentage points,the visible market fatigued and weak.

From the production point of view,the overall decline in production,some enterprises have ceased.

Dye production in the half year of the main trend of the decline.Zhejiang Longsheng by internal and external economic downward drag the business profit decline. Did the 2012 semi-annual disperse dye products operating income was 69090000 yuan,a year earlier than the 8.85% reduction,Gross margin of 24.72%,a year earlier than the 9.41% reduction.Reactive dye products operating income was 23700000 yuan, a year earlier than the 3.53% reduction,gross margin of 37.01%,a year ealier than the 1.45% reduction.On the Dyestuff Industry Association statistics 54 dye enterprise situation,the main production enterprises yield different levels are down,gross value of industrial output,sales revenue,profit tax profit indexes all fell. Dye production in the first half of 2012 as a whole to 355,000 tons,the cumulative year-on-year decrease of 10.8%;production decline in the petrochemical industry in the country is relatively large industry,the industry does have encountered unprecedented difficulties and challenges.In the most difficult of some dyes enterprise in order to reduce inventory,had holiday shutdown.

By Xu Xiyi