Dyes are colored organic compounds that can dye fibers or other substrates into a certain color. They are mainly used in dyeing printing of yarns and fabrics, leather dyeing, paper dyeing, food additives and plastic colouring fields.According to their properties and application methods, dyes can be divided into disperse dyes, reactive dyes, sulfide dyes, VAT dyes, acid dyes, direct dyes and other categories.
The big market in the history is mainly related to the dye price, and the dye price usually rises and falls with the raw material price as well as the supply and demand relation decides, has the strong weak peak season the cent.

The upstream industry of dyestuff manufacturing industry is petrochemical industry, basic chemical industry and coal chemical industry. The main raw materials of dyestuff are benzene, naphthalene, anthracene, heterocycles and inorganic acid and alkali and other chemical products. The downstream industry is printing and dyeing industry in the textile industry.

Dye intermediates can be divided into benzene series, naphthalene series and anthracene series according to their structure, among which benzene series intermediates are widely used.Among the benzene intermediates, m-phenylenediamine and reductants are the important raw materials for the synthesis of disperse dyes, and para-ester is the key intermediates of reactive dyes. Among them, m-phenylenediamine can also be further synthesized into m-phenylenediamine (mainly used as binder for tire cord impregnation) and m-aminophenol (heat/pressure sensitive dye

intermediates).Naphthalene intermediates, including H acids, are the core raw materials for the production of reactive dyes, accounting for 30-50% of the total cost.In addition, the intermediates for synthesis of anthraquinone dyes are mainly 1-amino-anthraquinone, which belongs to the anthraquinone system.

Porter’s five forces analysis of dye industry 1. The bargaining power of upstream suppliers is weak.The upstream suppliers of the dye industry are benzene, naphthalene and other petroleum and petrochemical commodity suppliers. The demand of the dye industry for petroleum and petrochemical commodity is almost negligible compared with other industries. Therefore, the dye industry is the recipient of the price of upstream petroleum and petrochemical products.

2. Strong bargaining power for downstream customers.The downstream customers of the dye industry are mainly printing and dyeing enterprises. The strong bargaining power of the dye industry to the downstream customers is mainly due to two reasons. First, the concentration of the dye industry is very low.Second, in the cost of printing and dyeing dyes accounted for a relatively small, printing and dyeing enterprises to dye prices rise easy to accept.

3. Few potential entrants in the industry.Due to patent technology, key raw materials and environmental protection factors, the dyestuff industry has high barriers, and the expansion of production capacity is restricted. In recent years, backward small production capacity has been eliminated while few new entrants have entered.Therefore, the future dye industry high concentration pattern will be able to continue.

4. Substitutes pose little threat.Foreign dye giants positioning high-end products or special dyes do not pose a threat to the domestic dye industry. In addition, affected by tariffs and freight, import prices are relatively high.As a result, dye substitutes pose little threat.

5. Moderate level of industry competition.After the large-scale integration of the industry from 2009 to 2010, the number of enterprises has dropped to more than 300. With the continuous deepening of the national supply-side reform, the concentration degree of the dye industry has improved significantly.Domestic disperse dye production capacity is mainly concentrated in Zhejiang Longsheng, Leap Soil Stock and Jihua Group, CR3 is about 70%, reactive dye production capacity is higher in Zhejiang Longsheng, Leap soil Stock, Hubei Chuyuan, Taixing Caragian and Anoki five enterprises, CR3 is nearly 50%.
Monitoring shows that usher in a long time out of season apparel market directly pushed up the price of disperse dyes.Disperse black ECT300% dye prices have risen 36% in the last two months.

In terms of demand, due to the impact of the epidemic, many large export-oriented textile enterprises in India have transferred many orders to domestic production in recent months due to the inability to guarantee normal delivery due to the epidemic.In addition, “Double 11″ is approaching, e-commerce enterprises in advance order, stock is the key to win the market.In addition to this year’s “cold winter” expected, the industry said textile enterprises are particularly busy now.Demand for upstream dyes has also risen sharply in response.

In terms of supply, the severe situation of safety and environmental protection in China may continue for a long time in the future due to the large pollution caused by the production of dyes and intermediates, and the relevant safety and environmental protection substandard production capacity and inefficient production capacity will be gradually eliminated.Guoxin Securities said that small-scale disperse dye production enterprises have limited production, the current situation is conducive to the development of dye leading enterprises.