Dyes may usher in price increases

It is understood that Bayi Chemical, the largest nitrochlorobenzene company in China, was sealed off by the Bengbu Emergency Management Bureau and imposed administrative penalties. Nitrochlorobenzene is an important intermediate for dyes, pesticides and pharmaceuticals. The domestic annual production capacity of nitrochlorobenzene is 830,000 tons, and Bayi Chemical has an annual production capacity of 320,000 tons, accounting for 39% of its output, ranking first in the industry. P-Nitrochlorobenzene is the main raw material of anisole and reduction products, which will affect the production cost of Disperse Blue HGL and Disperse Black ECT. After the closure of the old Bayi Chemical Plant, the downstream series of nitrochlorobenzene products will be operated in the high price range before the new plant starts.

Generally speaking, printing and dyeing companies will have two to three price increases every year, and if it hits the peak season, the frequency will only increase. However, in the past 2020, printing and dyeing companies have lost the right to speak for price increases due to the overall weakening of the market. Throughout the whole year, it seems that only in October, because of the market recovery, printing and dyeing factory orders improved significantly and there was an increase in dyeing fees, and the price increase was not too large. However, the cost of rent, labor, and environmental protection that the printing and dyeing enterprises have to face has not been reduced too much, and the operation pressure of the entire printing and dyeing industry is also very heavy.

Recently, the price of dyes has been increasing. Once the price increase of dyes becomes a reality, the cost of printing and dyeing factories will increase in detail. Printing and dyeing companies will inevitably increase dyeing fees passively to balance this part of the cost increase. At the same time, from the market situation at the end of the year, the textile market order volume after the year will not be bad. With the support of cost and demand, the dyeing fee increase also seems reasonable. Once the dyeing fee rises, the suppliers who have already quoted in the previous period will have to face rising costs and declining profits.

Like the weaving market, after the prices of upstream raw materials bottomed out and rebounded, they gradually pushed up the price of grey fabrics. The price of an important raw material in the printing and dyeing market has also begun to move around, and the entire demand and cost side are supporting the increase in dye prices. After the Spring Festival, the market may usher in an increase in dyeing fees caused by dyes. Traders should take into account the possible changes in dyeing fees when quoting customers.