The use of dyes makes people’s lives colorful.

From the clothes on the body, the schoolbag on the back, as a decorative scarf, tie, usually used in knitted fabrics, woven fabrics and fiber products, dye them with red, yellow, purple and blue colors.
In principle, as an organic compound, dye, in its molecular or dispersed state, gives other substances a bright and firm color.

In essence, disperse dyes are a kind of non-ionic dyes with low water solubility.

Its molecular structure is simple, the solubility is low, in order for it to be able to disperse well in the solution, in addition to grinding it to less than 2 microns, also need to add a lot of dispersants, so that it can disperse in the solution steadily.Therefore, this kind of dye is widely known as “disperse dye”.

It can be roughly divided into disperse orange, disperse yellow, disperse blue, disperse red and so on, several colors in accordance with different proportions, can also get more colors.Compared with other dyes, disperse dyes are the most widely used and one of the most important dyes.

Due to the extensive use of disperse dyes, the price fluctuation of its raw materials and products also affects the rapid adjustment of the share price of the relevant listed companies.

On March 21, 2019, an explosion occurred at xiangshui Chenjiagang Tianjiayi Chemical Factory in Yancheng. The CPC Central Committee and the State Council attached great importance to the explosion. Jiangsu Province and relevant departments are doing their best to rescue and rescue people from all walks of life are praying for Xiangshui.

After the explosion, chemical industry parks across the country started safety inspection activities in an emergency. Shaoxing Shangyu, a major dyestuff production town, also started a region-wide safety inspection, which will prompt chemical enterprises all over the country to sound the alarm and must work safely.

The main products of the chemical plant include disperse dyes and other reactive dyes, direct dyes intermediates – m-phenylenediamine.

After the explosion, various disperse dye enterprises and intermediate manufacturers have stopped accepting orders, directly leading to the supply shortage of m-phenylenediamine, which is bound to push up the price surge of downstream disperse dye products.

The market price of m-phenylenediamine has more than doubled since March 24, and the combination of a shortage of stocks and a hit to production capacity will push disperse dye prices higher.
And a few domestic disperse dye listed companies share prices have risen and plummeted, it is not difficult to understand.But the volatility of disperse dyes is not a random event in recent years, and people have long been aware of the volatility of its stock price.

➤ From the perspective of market competition, the disperse dye market has gradually formed an oligopoly market competition situation, while the demand for disperse dyes is basically stable. The increase of the concentration of disperse dye market will affect the market supply and demand, improve the bargaining power of sellers, and then promote the price rise of disperse dye market.

In 2018, the performance of listed companies with disperse dyes was better, and in 2019, if the performance continues to grow, the product price rise is the most direct and effective measure.

On the other hand, due to environmental protection first, this will also lead to disperse product dye prices will continue to keep high running.Not only environmental protection management costs surge, such as periodic adjustment of production limit will affect the supply of disperse dye market.

Although some disperse dye enterprises that once stopped production will gradually resume production, it is more common that the actual output of the reproduction enterprises is far less than that before the production is stopped.

The tough battle against pollution will push more industries with excess capacity to clear out, and the dye industry still has a long way to go.