It is reported that in January, most printing and dyeing and dye companies were still booming in production and sales. The overall dye inventory of printing and dyeing plants was low, and there was a certain replenishment demand. The inventory level of dye companies was low in recent years, and some products were in short supply. Since the second half of 2020, with the improvement of the domestic epidemic situation, demand in the downstream textile and apparel market has gradually recovered, overseas export orders have been strong, and grey fabric stocks have fallen to a low level in recent years. It is expected that the pattern of supply and demand will continue to the first half of 2021, which is expected to boost dye prices further rise. It is also understood that at the end of last year, the application for the renewal of the safety production license of Anhui "Bayi Chemical" hazardous chemicals production enterprise, the largest domestic manufacturer of nitrochlorobenzene, failed to pass. 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. Nitrochlorobenzene is an important intermediate for dyes, which will affect the production cost of Disperse Blue HGL and Disperse Black ECT.
Huachuang Securities pointed out that after the holiday, with the arrival of the stocking and replenishment season of downstream spring, summer and autumn and winter fabrics, dyes and printing and dyeing are bound to usher in a wave of rise.