Downstream companies are all paying attention: Where will the dye market go in 2019?


Looking back on 2018, China's dye market operated at a high level. After rebounding in 2016 and 2017, the dye market made a good repair to the industry's collapse in 2015.

 

In 2018, the overall industry atmosphere in China’s dye market improved, and the confidence of factories and traders increased. At the same time, driven by favorable support from the cost and supply sides, the dye market embarked on a breakthrough upward trend in 2018.

 

From the perspective of the entire dye industry chain, in the upstream and downstream links, dye factories have a strong voice and leading advantages in the industry chain, and the voice is mostly concentrated in leading enterprises (such as Longsheng, Runtu, Jihua , Huali, Golden Pheasant and other large dye factories). In the dye industry, leading companies have absolute advantages in production scale, market share, patent ownership, and technical support. The leaders of the price increase in the dye industry in 2018 were also many large-scale dye manufacturers.

 

Looking forward to the Chinese dye market in 2019, the decline in operating rates may be repaired. In the fourth quarter of 2018, parking factories in northern Jiangsu began to gradually resume operations. It is expected that after entering 2019, the effective production capacity of dyes in northern Jiangsu will be restored, and by then the industry's operations and output supply will gradually increase. At the same time, many large-scale dye relocation and production expansion projects are gradually coming to an end. Some projects are expected to release new production capacity in 2019. The increase in this part of production capacity will further cause the supply of the dye industry to shift to a loose state.

 

In terms of demand, "it's hard to say optimistic" has become the current overall industry status of downstream printing and dyeing and terminal clothing and home textiles. The weak external macroeconomic performance has led to a gradual downward revision of the terminal apparel and home textile market expectations, and the demand-side support for the dye industry in the coming year will remain weak.