江苏亚邦染料股份有限公司

JIANGSU YABANG DYESTUFF CO., LTD

Niutang Bridge, Changzhou City, Jiangsu Province, P.R. China

Tel:0086-519-88231283 Fax: 0086-519-86391059

ISO9002 PROVED
Email: yabangdyes@yeah.net

Year-end and New Year, the review and prospect of disperse dyes market in

China!

In 2019, the keywords of dyes and printing and dyeing are safety, environmental

protection, price, and order. The price of dyes, especially disperse dyes, has caused

concern among colleagues in the industry in the skyrocketing and plunging prices.

Near the end of 2019, the price of disperse dyes has fallen to a new low in the past two

years.

In 2020, what will happen to the price trend of disperse dyes? We made an analysis

and interpretation, and now I will share the relevant information with you as follows.

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 江苏亚邦染料股份有限公司
JIANGSU YABANG DYESTUFF CO., LTD

Niutang Bridge, Changzhou City, Jiangsu Province, P.R. China

Tel:0086-519-88231283 Fax: 0086-519-86391059

ISO9002 PROVED
Email: yabangdyes@yeah.net

As we known , disperse black ECT 300% is the product with the largest sales among

disperse dyes, and it is the vane of the entire disperse dye industry. In the first quarter

of 2019, the actual average transaction price of 300% of scattered black ECT was

about USD5.05 / kg. At that time, market participants were not optimistic about the

price trend of dyes and intermediates. However, with the occurrence of the "3.21"

explosion, the disperse Dye prices soared; in the second quarter, the "3.21" event

continued to ferment, and every April the industry event, the dye exhibition was held,

the industry was extremely excited. In April, the transaction price of 300% of scattered

black ECT exceeded USD7.25 / kg, and the price of some orders reached USD8.00 /

kg, and even rose to USD8.70 / kg, a record high in recent years. In the third quarter,

starting from August, the price dropped to a two-year low. By the end of September,

the transaction price of disperse dyes continued to be around USD4.05 / kg, a drop of

more than 50% from the highest price in the second quarter. In the fourth quarter,

300% of dispersed black ECT fell to 3.75 / kg, a 21% decrease from the USD4.35 / kg

at the beginning of the year. Under the premise of huge pressure on environmental

protection and safety, this price has caused small-scale manufacturers of dispersed

dyes to be unwilling to produce.

2020 is approaching. We believe that the bottoming out of disperse dye prices is

inevitable. The specific reasons are as follows:

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 江苏亚邦染料股份有限公司
JIANGSU YABANG DYESTUFF CO., LTD

Niutang Bridge, Changzhou City, Jiangsu Province, P.R. China

Tel:0086-519-88231283 Fax: 0086-519-86391059

ISO9002 PROVED
Email: yabangdyes@yeah.net

First, the price of disperse dyes is near the cost line of small-scale enterprises.

Disperse black ECT 300% According to the current market price, small and

medium-sized disperse dye companies have almost no profit, and large-scale

enterprises do not need to further reduce their prices. It is a market law that prices

rebound after bottoming out.

Second, the cost of disperse dyes is higher than at the beginning of the year. Disperse

dye intermediates are at a high level compared with the beginning of the year. For

example, the price of m-phenylenediamine at the beginning of the year is USD6521 /

ton, the current price is USD10145 / ton, the price of the reduced product is USD5797 /

ton at the beginning of the year, and the current price is USD6521 / ton. Higher than

Page 3 of 5
 江苏亚邦染料股份有限公司
JIANGSU YABANG DYESTUFF CO., LTD

Niutang Bridge, Changzhou City, Jiangsu Province, P.R. China

Tel:0086-519-88231283 Fax: 0086-519-86391059

ISO9002 PROVED
Email: yabangdyes@yeah.net

the price at the beginning of the year. Investment in safety and environmental

protection is increasing, and costs in energy and labor are increasing.

Third, the major disperse dye manufacturers such as Longsheng and Runtu have low

inventory levels. As the price of disperse dyes fell to historical lows in the fourth quarter,

many traders and printing and dyeing companies increased their stocking, resulting in

insufficient stocks of disperse dye manufacturers. As a manufacturing company, when

production and sales are even in short supply, companies generally use price means to

Regulate demand and balance the relationship between production and sales.

Fourth, large-scale disperse dye companies are listed companies, and medium-sized

disperse dye companies are mostly applying for listing. Listed companies and

quasi-listed companies have greater profit demands. Based on the current price of

disperse dyes, the profits of dye companies will decline sharply in 2020, and listed

companies and quasi-listed companies will face greater pressure on their performance

to decline. Due to the high concentration of the disperse dye industry, the combined

market share of Longsheng and Runtu is about 60%. Highly concentrated industries,

especially oligopoly companies, have greater market pricing power and are facing

downward pressure on performance. Increasing profits is also a common

decision-making behavior of enterprises.

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 江苏亚邦染料股份有限公司
JIANGSU YABANG DYESTUFF CO., LTD

Niutang Bridge, Changzhou City, Jiangsu Province, P.R. China

Tel:0086-519-88231283 Fax: 0086-519-86391059

ISO9002 PROVED
Email: yabangdyes@yeah.net

Fifth, the pressure of safety and environmental protection has caused the new and old

enterprises of disperse dyeing companies to fail to meet their expectations. The lower

limit of the product price is determined by cost, and the upper limit of the product price

is determined by supply and demand.

It is expected that the price of disperse dyes will increase more than once in the first

half of the year. However, the capacity of disperse dyes is likely to increase in the

second half of 2020, and there will still be price pressure in the second half of the year.

We will also continue to monitor dye price trends.

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