In the complex market environment, the prosperity of the dye industry has declined again after experiencing a small rebound in the spring.
“In the first half of the year, printing and dyeing companies ushered in the peak season in March. The demand for upstream dyes increased and prices rose significantly, with a cumulative increase of 20% in one month.” Zhuochuang Information Dye Analysis Consultant Gu Shujing told reporters that the price increase in March does not necessarily mean that the market has recovered. Behind it are factors such as the support of rising crude oil prices in the upstream and the early release of demand due to destocking of downstream factories.
“The monthly average price of dyes continued to decline from April to June, and the dye industry’s growth in the second half of the year The trend depends on the performance of printing and dyeing factories and textile and garment ‘Golden Nine and Silver Ten’ periods, as well as the continued impact of overseas epidemics on orders.”
Transaction data from the colorful cloud dyeing e-commerce platform shows that 4 -In June, the sales volume and sales price of dyes were lower than those in the first quarter. In June, most dye manufacturers reported that shipments increased, and most traders reported that shipments decreased. This phenomenon explains to a certain extent Traders start stocking up after destocking in the early stages. The professional platform predicts that there will be an increase in price increases for disperse dyes and an increase in price decreases for reactive dyes.
An insider in the dye industry said that, including mainstream major manufacturers in the dye industry, the industry’s average production capacity operating rate in the first half of the year was 50-60%, and profits have been compressed to a certain extent. , but as the market slowly recovers, the dye industry is expected to return to pre-epidemic levels in 2021.
Qianzhan Industry Research Institute predicts that the sales revenue of the dye industry is expected to exceed 70 billion yuan this year, and the average annual growth rate of industry sales revenue will remain at around 8% in the next few years. The sales revenue of my country’s dye industry is expected to reach 102.9 billion yuan in 2020.
Downstream demand is released and dye prices are adjusted in the short term
The dye industry The upstream of the industrial chain is petrochemical, coal chemical, basic chemical and other industries. Petrochemical industry provides raw materials such as benzene and aromatic hydrocarbon derivatives, coal chemical industry provides important raw materials coal tar, and basic chemical industry provides inorganic raw materials such as soda ash and nitric acid. The midstream of the industrial chain is the printing and dyeing auxiliary manufacturers, and the downstream is the printing and dyeing processing, textile and garment industries.
Therefore, the production of printing and dyeing companies and clothing companies directly affects the price and output of dyes.
Data from the National Bureau of Statistics show that from January to April 2021, the output of printed and dyed fabrics by printing and dyeing enterprises above designated size was 17.318 billion meters, a significant year-on-year increase of 27.95%, and an increase of 18.16% compared with the same period in 2019. %. From January to April, the retail sales of clothing, shoes, hats, and knitted textiles above designated size increased by 48.1% year-on-year, and the export volume of textiles and clothing increased by 32.8% year-on-year. Market demand continued to improve.
Yingfeng Shares (605055.SH), a listed company whose main business is printing and dyeing services, had revenue of 151 million yuan in the first quarter of 2021, a year-on-year increase of 69.89%, and a net profit of 24.4062 million yuan. Yuan, turning a loss into a profit year-on-year.
It is worth noting that Qicaiyun’s survey shows that in the first quarter, affected by factors such as the production off-season and rising raw material prices, orders from printing and dyeing companies were less than expected, resulting in dye consumption did not meet expectations, which led to the actual transaction price growth of dyes being slower than expected.
Gu Shujing explained, “After the favorable downstream demand was released in advance, orders from printing and dyeing companies began to decrease, and the amount of incoming warehouses may continue to decline, and end customers are not satisfied with the current dye prices in the market. The lack of recognition has caused many customers to cancel orders, making it difficult to increase the demand for reactive dyes.”
Gu Shujing said that the current overseas epidemic has caused the export of dyes to be suppressed, and the company’s foreign trade will also be Understand a certain amount of pressure.
Affected by the epidemic in 2020, the domestic dye industry as a whole shrank. According to data from the China Printing and Dyeing Industry Association, my country’s dye output in 2020 was 769,000 tons, a decrease of 223,000 tons in three years; the sales revenue of the dye industry was 60.9 billion yuan, a year-on-year decrease of 11.52%, and the export volume hit a new low of 38.15 in the past five years. million tons, a decrease of 2.80%.
The average operating rate of the industry is 50-60%, and the performance differentiation is obvious
At present, the listed companies in the domestic dye industry mainly include Zhejiang Longsheng (600352.SH), Runtu Co., Ltd. (002440.SZ), Jihua Group (603980.SH), Qicai Chemical (300758.SZ), Annoqi ( 300067.SZ), Runhe Materials (300727.SZ), Yabang Co., Ltd. (603188.SH), Golden Pheasant Co., Ltd. (300798.SZ), Demei Chemical (002054.SZ), Midland New Materials (300586.SZ), Yayun Co., Ltd. (603790.SH) and Ningbo Color Masterbatch (301019.SZ). The above-mentioned companies are mainly concentrated in Jiangsu and Zhejiang.
In addition, some listed companies are involved in the dye business and have become the company’s most profitable business: Ruchuanhua Zhilian (002010.SZ)’s 2020 revenue includes printing and dyeing auxiliaries revenue Accounting for 15.94%, contributing 49.92% of profits; 25.6% of Haixiang Pharmaceutical (002099.SZ)’s 2020 revenue comes from dyes, contributing 32.04% of profits; Jianxin Shares (300107.SZ)’s 2020 revenue 32.71% comes from dye intermediates, and the profit ratio is 59.04%.
Judging from the output in 2020, the concentration of domestic dye companies is relatively high. Zhejiang Longsheng, Runtu Co., Ltd., and Jihua Group have 207,200 tons and 130,300 tons respectively. , 64,400 tonsThey accounted for 26.95%, 16.95%, and 8.38% of the country’s total output.
It is understood that the average production capacity operating rate of the dye industry in the first half of the year was 50-60%, and the profits of industry companies have been compressed to a certain extent. In addition, the performance of dye companies has also been differentiated. . Zhejiang Longsheng’s revenue and profit in the first quarter ranked first in the industry, but they fell by 0.6% and 9.1% year-on-year respectively; Runtu Co., Ltd.’s net profit fell by 23.4% year-on-year; Yabang Co., Ltd.’s net profit fell by 26.07% year-on-year.
The net profit of Jihua Group in the first quarter rose by 222.3% year-on-year; the first-quarter profit of Golden Pheasant rose by 172.93% year-on-year; Midland New Materials, Yayun Shares, Qicai Chemical , Demei Chemical achieved net profit growth of 48.32%, 30.71%, 30.24%, and 36.29% respectively; according to the 2021 interim report notice released by Ningbo Masterbatch, the company’s net profit increased by 20.12%-46.42% year-on-year.
The main operating data announcement for the first quarter of 2021 released by Jihua Group shows that the company’s output and sales of dyes and intermediates during the period were 18,000 tons and 22,500 tons respectively. There was a significant increase from 13,200 tons and 13,400 tons in the same period last year; the first quarter report of Golden Pheasant pointed out that the main factor driving changes in business income is that as the epidemic situation gradually improves, the global industrial chain and supply chain have gradually recovered.
Environmental protection policies increase industry concentration
Research by Chuancai Securities The report mentioned that the dye industry is highly concentrated in the country, with the concentration ratio of the top three companies in disperse dyes reaching 60%, and the concentration ratio of the top four companies in reactive dyes exceeding 65%. Affected by environmental protection requirements, industry concentration is expected to continue to increase.
It is understood that disperse dyes account for 50% of dye demand. Currently, Zhejiang Longsheng and Runtu Co., Ltd. have the production capacity of 140,000 tons and 110,000 tons of disperse dyes respectively. The price of dyes Will fully benefit from the rise.
With the increasingly stringent national environmental protection standards and the increasing environmental awareness of the entire society, the cost of pollution control in the dye industry will further increase, which also puts forward new requirements for enterprises.
The reporter found that Zhejiang Longsheng has formed an industrialized integrated technology for the clean production of m-phenylenediamine, a process for hydrolyzing m-phenylenediamine to produce resorcinol and Industry-leading environmental protection technologies such as the “Disperse Dyes Clean Production Integrated Technology Research and Development and Industrialization” project have solved to a large extent the bottleneck problems of wastewater and waste residue treatment that plague the sustainable development of the industry.
Runtu Co., Ltd. mentioned in its regular report that it will focus on strengthening the high-strength environmentally friendly disperse dye continuous project and cationic dye project by promoting the construction of key technical transformation projects. Technical transformation, improving production processes and improving equipment automation levels to achieve clean and safe production.
Yayun Co., Ltd. said that the company is developing new environmentally friendly dyes and auxiliaries, and at the same time optimizing the dyeing and finishing application process to drive downstream printing and dyeing enterprises to achieve energy conservation and emission reduction. </p
