Dyestuff and Organic Pigment Performed Stably in H1

Stable production growth

The production, sales and export of the dyestuff and organic
pigment industry in China stably grew and the economic
performance improved in the first half of 2006.
   According to statistics from China Dyestuff Industry
Association, in the first half of 2006 the dyestuff and organic
pigment industry accomplished a total output value of RMB15.99
billion (present price), an increase of 3.9% over the same period
of 2005. The sales revenue was RMB15.16 billion, an increase of
2.2%. The output of dyestuffs in the first half of 2006 reached
340.7 thousand tons, an increase of 12.5%. It is much less than
the output of 607.3 thousand tons provided by the National Bureau
of Statistics of China. The main reason is that China Dyestuff
Industry Association has only counted the output of dyestuffs
in its members, not the output in small producers. All dyestuff
varieties had a growth in output. The output was around 145
thousand tons for disperse dyes, around 60 thousand tons for
reactive dyes and around 45 thousand tons for sulfur dyes. The
output of organic pigments was 85.3 thousand tons in the first
half of 2006, an increase of 13.5% over the same period of 2005.

Export increase

The export amount of dyestuffs in China was 120.9 thousand tons
in the first half of 2006, an increase of 4.3% over the same
period of 2005 and the export value reached RMB372.1423 million,
an increase of 4.0%. The export amount and the export value
basically grew synchronously. The growth of the export value was
however 8.0 percentage points down from the same period of 2005
and the export price dropped relatively.
   In the 8 dyestuff categories, except disperse dyes and vat
dyes, the export amount and the export value of all other
dyestuff varieties achieved a growth. The export value growth
of acid dyes was higher than the export amount growth. The export
amount of disperse dyes has always held the first place. The
export amount of disperse dyes in the first half of 2005 was down
by 1.4% compared with the same period of 2004, but the export
value maintained a growth of 14.5%. The export amount of disperse
dyes in the first half of 2006 was further down by 10.1% and the
export value was also 1.3% lower. Disperse dyes produced in China
hold quite high share in the international market. The export
growth of disperse dyes has increased slowly in recent years and
had the first overall negative growth in the first half of 2006.
   The export of indigo has fluctuated greatly in the past two
years. After a negative growth in the first half of 2004, it had
a growth of 45.5% in the first half of 2005 and the economic
returns in export were also 96.8% higher, holding the first place
in all dyestuff varieties. The export of indigo reduced
drastically once again in the first half of 2006. The export
amount was down by 27.4% and the export value was down by 35.5%.
In all dyestuff varieties, the export of indigo has had the
greatest fluctuations.
   On the basis of a 12.4% export growth in the first half of
2005, the export of reactive dyes maintained a 46.2% growth in
the first half of 2006. A high growth therefore maintained for
3 consecutive years. Varieties with relatively high export
growth in the first half of 2006 also included other dyes, sulfur
dyes, direct dyes and basic dyes.
   There were 113 target countries and regions for the export
of dyestuffs in the first half of 2006, being 8 more than the
same period of 2005. The total amount exported to the first ten
target countries and regions was 76.8 thousand tons, accounting
for 63.6% of the national total and the export value was
US$225.3676 million, accounting for 58% and being lower than the
same period of 2005. Asia has always been the major target region
for the export of dyestuffs in China and the amount exported to
that region accounted for around 70% of the total.
   The export amount of organic pigments in China was 67.3
thousand tons (the actual export amount being around 35 thousand
tons after deducting coatings printing paste and color
masterbatch) in the first half of 2006, an increase of 22.0% over
the same period of 2005. The export value was US$296 million,
an increase of 25.1%.
   There were 101 target countries and regions for the export
of organic pigments in the first half of 2006, being 5 more than
the same period of 2005. The amount exported to the first 10
target countries and regions was 41 thousand tons, accounting
for 60.9% of the total and the export value was US$190 million,
accounting for 64.4%.

Import maintains stable

The import of dyestuffs in the first half of 2006 was stable,
being basically equal to the same period of 2005. After a
reduction in 2005, the import of organic pigments increased in
2006.
   The import amount of dyestuffs in China was 34.3 thousand tons
in the first half of 2006, being basically equal to the same
period of 2005. The import value was US$196 million, an increase
of 9.4%. The import growth was relatively high with acid dyes
and direct dyes. The import of reactive dyes tends to go down
from the high growth in recent years. After a negative growth
in the import amount in 2005, the import continued to have a
growth of -0.7% in 2006. The import amount of reactive dyes,
however, still held the first place in all dyestuff varieties.
   The import growth reduction of dyestuffs in recent years is
not the result of domestic demand drop. It is mainly because
domestic producers have made constant efforts in developing new
products, improving product quality, offering after-sale
services and using domestic products to replace imports.
     There were 9 countries and regions with import amount of
over 1 thousand tons. The amount imported from these countries
and regions was 28.3 thousand tons, accounting for 82.6% of the
total and the import value was US$160 million, accounting for
81.9%.
   China imported organic pigments from 43 countries and regions
in the first half of 2006, being 1 more than the same period of
2005. There were 7 countries and regions with import amount of
over 600 tons.
   The economic functioning of the dyestuff and organic pigment
industry in China was relatively stable in the first half of 2006.
It is expected that a trend of stable growth will maintain in
the second half of 2006. As is known to all, restrictions put
by the United States and Europe on the export of textiles from
China in 2005 produced great impact on the entire textile export
market and the export growth slowed down. Such impact will be
weakened in the second half of 2006, but it will still be there.
The export of dyestuffs and organic pigments will continue to
increase but the growth margin will not be very large. Besides,
due to the energy supply deficit and the raw material price rise,
the economic performance of the dyestuff and organic pigment
industry will also be affected to a certain extent.

Table 1 Major Dyestuff Producers in H1                 (t)
Producer                               Output
Zhejiang Lo